Frequently Asked Questions

Question:

Why does my Council Tax increase by more than the rate of inflation?

Answer:

The Council builds in expected pay and price increases when it calculates the budget for the coming financial year.

In addition, the costs the Council incur are affected by increases in quantity. For example, increasing tonnage of waste disposed, an increase in the number of children moving from primary to secondary education (which is more expensive) and an increasing proportion of the population over the age of 65 years requiring residential and home care.

There are also costs associated with legislative changes and new initiatives; for example, the Council has to meet national environmental targets, which involves the promotion of alternative methods of disposing of waste (recycling) or face increasing landfill tax by Central Government.

The Council also has to finance its capital expenditure through borrowing, which is an addition to the Revenue Budget.

Contact for further information: Principal Financial Policy Manager, Tel: 01432 261865
Email: smc@herefordshire.gov.uk

Last Updated: 22 May 06,

Review Date: 20 September 2005