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Herefordshire Council agreed today (Friday, March 5) at its full Council meeting to increase Council Tax by 8.9% - a reduction of 1.5% on the original proposal of 10.4%.
The smaller increase means the average Council Tax bill for a Band D property in Herefordshire will now be £959.53 instead of £972.
Cuts amounting to £860,000 will have to be made in areas across the majority of Council services to accommodate the smaller Council Tax rise but key areas of Education and Social Care will be protected and their budget allocations unchanged.
Cabinet had originally agreed on an increase of 10.4% for 2004/05. However, after further taking into account the on-going loss of Central Government grants, pressures to maintain key services - especially for the vulnerable - and a meeting with the Office of the Deputy Prime Minister (ODPM) in London last week, a smaller rise was recommended to full Council.
Cllr Roger Phillips, Herefordshire Council Leader, said: “We've considered the impact a 10.4% rise would have on our communities.
“We could not run the risk of being capped – for example, having our increase limited to say 5-7% - as this would have decimated services.
“However, I must emphasise that we will be maintaining our commitment to Social Care and Education – two of our key service areas which soak up a total of 70% of our annual budget, and therefore Council Tax.
“This has been a very difficult decision to make and will have an impact on services. Sadly it means some people will not get the level of service they expect.
“Although the rise has been curbed to 8.9% this is still a higher level than we would have liked and we’re acutely aware of the hardship this will cause some residents – particularly those on fixed incomes.
“With this in mind, as an authority we’re doing our utmost to ensure those in need receive their entitlements and will be mounting a campaign to raise awareness of benefits available.
“I’d also like to thank those who took part in the recent consultation. The results showed that around 50% of people are prepared to see Council Tax go up to improve services and 40% want Council Tax maintained at the level of inflation. We shall be developing this with further consultation planned later in the year.”
At this morning’s meeting, no Council Members voted against the 8.9% increase.
Council Tax Set
25 March 2004
Herefordshire Council agreed today (Friday, March 5) at its full Council meeting to increase Council Tax by 8.9% - a reduction of 1.5% on the original proposal of 10.4%.
The smaller increase means the average Council Tax bill for a Band D property in Herefordshire will now be £959.53 instead of £972.
Cuts amounting to £860,000 will have to be made in areas across the majority of Council services to accommodate the smaller Council Tax rise but key areas of Education and Social Care will be protected and their budget allocations unchanged.
Cabinet had originally agreed on an increase of 10.4% for 2004/05. However, after further taking into account the on-going loss of Central Government grants, pressures to maintain key services - especially for the vulnerable - and a meeting with the Office of the Deputy Prime Minister (ODPM) in London last week, a smaller rise was recommended to full Council.
Cllr Roger Phillips, Herefordshire Council Leader, said: “We've considered the impact a 10.4% rise would have on our communities.
“We could not run the risk of being capped – for example, having our increase limited to say 5-7% - as this would have decimated services.
“However, I must emphasise that we will be maintaining our commitment to Social Care and Education – two of our key service areas which soak up a total of 70% of our annual budget, and therefore Council Tax.
“This has been a very difficult decision to make and will have an impact on services. Sadly it means some people will not get the level of service they expect.
“Although the rise has been curbed to 8.9% this is still a higher level than we would have liked and we’re acutely aware of the hardship this will cause some residents – particularly those on fixed incomes.
“With this in mind, as an authority we’re doing our utmost to ensure those in need receive their entitlements and will be mounting a campaign to raise awareness of benefits available.
“I’d also like to thank those who took part in the recent consultation. The results showed that around 50% of people are prepared to see Council Tax go up to improve services and 40% want Council Tax maintained at the level of inflation. We shall be developing this with further consultation planned later in the year.”
At this morning’s meeting, no Council Members voted against the 8.9% increase.