Local Council Tax Rise Kept To 2.99 Per Cent This Year
Councillors have considered South Bedfordshire District Council’s budget for the coming financial year, as part of the authority’s five-year financial strategy. At a meeting of the Executive on 12 February to discuss the new budget forecasts, Members decided to recommend to full Council on 26 February 2008 a Council Tax increase of only 2.99 per cent in 2008/2009. This is the same increase as last year and lower than the rate of inflation - the current Retail Prices Index (RPI) stands at just above four per cent.
The Executive decided that the council needs a total of £15.6m for 2008/2009 to cover net expenditure and run its services. Of this total, £8.8m - more than half - will come from the government direct through the annual Formula Grant. This lower than expected grant from government means that the council forecasts it needs to find an additional £1.2m over the next five years to make up the shortfall.
The remaining £6.8m needed for council services will come from local taxpayers. This year this averages out at £158.59 per year for a Band D property.
Council Tax payers pay more than this in total however because about nine tenths of the total tax payment is paid to support Bedfordshire County Council, the Bedfordshire Police, the Bedfordshire & Luton Fire and Rescue Service and the taxpayer’s local town or parish council. Only 11 per cent of the Council Tax payment goes to support the work of the district council itself.
Introducing the new budget, Councillor Phillip Penman, Executive member for Resource Management emphasised that it again showed how the council continued to achieve prudent financial management: “Our internal control systems are working well. There is pressure on our car parking budget but, whilst income receipts from car parking charges are down, we have no plans to increase them. Even with a poor government grant settlement, we are still able once again to present a budget to our residents which allows us to raise Council Tax by the lowest percentage of all major authorities in Bedfordshire whilst continuing to maintain services at their present levels.”
