Council tax to rise – by just £2.18 per year

RESIDENTS of Hambleton look likely to enjoy one of the lowest council taxes in the country again – despite the risk that 1.5m of savings will be needed in the next three years.

Councillors are being asked to approve a council tax rise of four pence a week when they meet next month, an increase of 2.18 a year on an average Band D property, bringing the charge up to 89.48.

“We charge one of the lowest council taxes in the country now – and with this rise will continue to do that,” said Hambleton District Council’s leader, Coun Arthur Barker.

“The Government has indicated that it wants to see rises in council tax kept below three per cent – and a four pence per week increase is in line with this. It is a very small increase and shows how efficient this council continues to be.”

As reported by the Yorkshire Post, Hambleton faces cutting key services to shave 1.5m off budgets and avert a looming financial crisis.

The overhaul over the next four years is planned because of fears that funding from Westminster will dramatically fall in the wake of the recession.

Hambleton has one of the lowest council tax rates nationally, meaning its ability to prop up its finances from local charge payers is very restricted.

The director of financial services, Phil Morton, said: “The council tax is about setting the 2010/11 budget and the amount of money the council needs to run services. That’s 2.5 per cent.

“The 1.5m is what we think we are going to lose as a result of Government spending cuts yet to be announced. Our understanding is we can expect our budgets to be cut by five per cent for each of three years from 2011 onwards.”

But the authority’s hands are tied on council tax because the Government expected town halls to peg rises below three per cent.

Mr Morton added: “The inference is anyone who sets a council tax increase of three per cent or above will be capped. So even if we want to raise additional money through council tax we are not able to – and don’t want to.”