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Herefordshire Council’s Cabinet supported a 10.4% rise in Council Tax for 2004/2005 at its meeting today (Thursday, February 19).
If agreed by full Council next month, the recommended increase would see the Council Tax on Band D properties in Herefordshire rise from £925 to £972.
Ian Hyson, County Treasurer, said: “We recognise that the increase is relatively high and it is certainly more than the Council would have liked.
“However, more than 3% of the rise is as a consequence of staggering last years increase by using some of the Council’s limited reserves.
“Herefordshire is in a similar position to a majority of other authorities which are looking at rises well above inflation.
“The expectation by Central Government that Local Authorities should limit tax increases to 5% is impossible when they are faced with significant and unavoidable demands on service budgets.”
In Social Care – where the Council spends 20% of its budget - the number of older people in the County is continually rising placing pressure on residential and home care services.
Similarly in Education - which soaks up 50% of the budget - costs sharply rise as primary school pupils move into secondary education.
In addition, the costs associated with waste disposal continue to rise at above inflation levels as households produce ever increasing amounts of waste.
Mr Hyson added: “With these spending pressures, and in lieu of Government meeting the shortfall, it is completely unrealistic to expect Authorities to restrict tax rises to the rate of inflation.
“Nationally Local Authorities are facing an average rise of around 7%.
“Herefordshire would also have been very much in line with this 7% rise if it hadn’t been for the 3% rise deferred from last year.”
The final decision on Council Tax will be taken on March 5 when full Council meets and considers results from community consultation which has included Council Tax road shows, street surveys and a county-wide questionnaire.
Cabinet supports Council Tax rise
Herefordshire Council’s Cabinet supported a 10.4% rise in Council Tax for 2004/2005 at its meeting today (Thursday, February 19).
If agreed by full Council next month, the recommended increase would see the Council Tax on Band D properties in Herefordshire rise from £925 to £972.
Ian Hyson, County Treasurer, said: “We recognise that the increase is relatively high and it is certainly more than the Council would have liked.
“However, more than 3% of the rise is as a consequence of staggering last years increase by using some of the Council’s limited reserves.
“Herefordshire is in a similar position to a majority of other authorities which are looking at rises well above inflation.
“The expectation by Central Government that Local Authorities should limit tax increases to 5% is impossible when they are faced with significant and unavoidable demands on service budgets.”
In Social Care – where the Council spends 20% of its budget - the number of older people in the County is continually rising placing pressure on residential and home care services.
Similarly in Education - which soaks up 50% of the budget - costs sharply rise as primary school pupils move into secondary education.
In addition, the costs associated with waste disposal continue to rise at above inflation levels as households produce ever increasing amounts of waste.
Mr Hyson added: “With these spending pressures, and in lieu of Government meeting the shortfall, it is completely unrealistic to expect Authorities to restrict tax rises to the rate of inflation.
“Nationally Local Authorities are facing an average rise of around 7%.
“Herefordshire would also have been very much in line with this 7% rise if it hadn’t been for the 3% rise deferred from last year.”
The final decision on Council Tax will be taken on March 5 when full Council meets and considers results from community consultation which has included Council Tax road shows, street surveys and a county-wide questionnaire.