Council Tax
Overview
Allerdale Borough Council is interested in hearing residents’ views to help us reach a decision when we consider our budget at our meetings of Executive (8 February 2012) and Council (7 March 2012).
Jane Allder, Strategic Manager for Resources, said: “The Government has offered councils across the country a one-off grant to allow council tax levels to remain frozen for 2012-13. If we choose to maintain our council tax level at the same as the current year, we will receive a grant equivalent to a 2.5% increase.
“Last year the Government asked councils not to increase council tax and provided councils with the additional funding to allow us to do this. This year the offer is different as it is for one year only. If we accept the grant and freeze council tax, we would have to find this money next year (2013-14).
“Also the proposed offer of a grant at 2.5% is below current inflation levels, which means that our costs will not be covered even if the grant is accepted.
“For Allerdale Borough Council, a 2.5% increase in council tax would be about £1.21 for every person in the district. The Government are offering an equivalent grant of £114,000 to retain council tax at the current rates.
“But as the additional grant is for one year only this means that for our income to be the same in 2013-14 as it is in 2012-13, we would have to raise the £114,000 even before we consider the additional needed for 2013-14. In effect we would have to have an increase in council tax of 5% to allow us to catch up, or alternatively find additional savings to the base budget.
“Not all of the council tax you pay goes to Allerdale Borough Council as Cumbria County Council and Cumbria Police Authority charges are also included in your bill and at this stage it is unclear whether they will be accepting the freeze grant.
“This means that even if Allerdale Borough Council does accept the freeze grant, but the County or Police reject it, you may still see an increase in your bill.”
To give the Council your views, contact 01900 702528, email jane.allder@allerdale.gov.uk or to send via post click on the link in the 'Give us you views' section below.
The consultation deadline is 23 January 2012
What happens next
Any comments received will now be evaluated and the results published in due course.
