Council tax rises frozen amid warning of ‘difficult decisions’

Sheffield will set out detailed budget proposals next month which are expected to include savings of around £50m.

The city was expected to join a growing list of councils in the region arguing they cannot afford to continue freezing their bills as urged by the Government in recent years.

Labour-run Leeds and Conservative-run North Yorkshire are among those already to have set out proposals for their first increase since 2010 this year.

But Sheffield City Council has now confirmed its share of the bill will remain the same in April although the promise of a freeze was accompanied by fresh warnings over the impact of Government funding cuts on services.

Ben Curran, the council’s cabinet member for finance, said: “These are unprecedented times for Sheffield City Council.

“By 2015 this council will have lost 50 per cent of its funding from central Government over the last five years.

“We cannot take such a hit without this having a serious impact in terms of what we can and can’t deliver as a council.

“We have taken a careful and measured approach in terms of the budget but we have to make difficult decisions to save jobs and keep vital public services while protecting vulnerable citizens.

“But the bottom line is this cannot be sustained and more difficult decisions are likely in the future.

“And the evidence shows councils in the North of England have been hit far harder than those in the South and South East, which cannot be fair by anyone’s standards.

“We also recognise the cost of living has reached crisis point for many in terms of making ends meet and that is why we are proposing to freeze council tax.”

It is understood that next month’s budget proposals will focus on changes to services rather than high profile individual items such as the closure of the Don Valley stadium last year.

Sheffield is currently considering the future of libraries with proposals on the table to continue with 12 in their current form and for a further five to receive council funding but not money for staffing.

A further 11 would close unless volunteer groups came forward to operate them.

The Labour-run council has come under fire from its Liberal Democrat opponents for its spending decisions.

Sheffield City Council’s cabinet will today decide whether to spend £300,000 improving shop fronts in the Spital Hill area of the city.

Councillor Andrew Sangar, Sheffield Liberal Democrats’ spokesman for finance, said: “While Labour bosses repeat bogus claim that no funds are available to save local libraries, they continue to waste money on their costly pet projects.

“Of course, as a council there’s a lot more we could be doing to support local businesses; however, council funds need to be directed to the services people need the most – not squandered on local pork-barrel politics.”

The Government has repeatedly rejected the suggestion that funding cuts for councils have unfairly hit northern authorities.

Town halls which freeze their bills receive extra Government funding but a growing number of councils in the region have said they must raise additional cash by increasing council tax.

Under Government rules all increases must be kept below two per cent unless councils hold a public ballot which supports a higher increase.

It is understood Local Government Secretary Eric Pickles is pushing to reduce that limit to 1.5 per cent.

Calderdale Council, which broke the freeze last year with a 1.99 per cent rise, said this week there will be no further increase council tax in 2014.

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