Cabinet recommends cut in proposed council tax rise

Cabinet members at Herefordshire Council decided to reduce the assumed level of council tax increase for next year from 4.7 per cent to 4.4 per cent.

Cabinet will confirm its recommendations to Council on the final level of council tax increase that will apply from April when it meets on February 24.

Council will determine cabinet's council tax and budget recommendations for next year on March 7.

The decision to press ahead with the 4.4 per cent increase came amid discussions to update the council's "medium term financial management strategy" which broadly sets out the authority's financial framework until 2011.

Members heard that following a review of budgets, the council will make savings of just over £2 million next year in order to balance the books.

These budget reductions will be made without affecting the level of services provided by becoming more efficient in the way it buys goods and services and manages contracts.

However, cabinet was told that government funding is "not generous" compared with other authorities.

Herefordshire Council receives £764.82 per person from government a year - which puts the authority in 38th position out of 47 in similar authorities.

Each person receives around £173.02, or 18.4 per cent, less than the average.

To cope with the sharp rise in older people in the county, the financial strategy earmarks an extra £871,000 for adult services.

In the longer term the government has indicated the council will get just over £2 million a year in 2009/10 and 2010/11 to fund all pressures including increased waste costs.