Government spending cuts won't affect council tax, bosses claim

Local authorities across the country are expecting severe reductions in Westminster grants after the forthcoming general election, as a result of spiralling public debt.

But the Liberal Democrats, who took control of Sheffield Council in 2008, said they had been voted in after pledging to cut council tax, and would stick to that pledge.

Council leader Paul Scriven made the vow as he and cabinet member for finance, Simon Clement-Jones, unveiled a 1.5 per cent council tax increase for 2010/11.

Coun Scriven said the below-inflation tax rise was the lowest ever posted by the authority and had been achieved by making "continued efficiency savings".

He added that he was committed to the zero per cent promise for 2012, and warned any Government cuts which jeopardised that pledge would be fought "tooth and nail".

According to Coun Scriven, savings of 13.5m will be made in the council's latest budget, which come on top of 16m of efficiencies announced this time last year.

He said: "This budget has been set against a background of financial turbulence. There will be cuts from Government and Sheffield Council will be affected like other authorities.

"But this has not changed our focus as an authority and by 2012 we will set a zero per cent council tax. That's what we came to power on and that's what we will deliver.

"I say to any Government on behalf of the people of Sheffield, woe betide anyone that comes to us and says that they want us to change that."

Around 750,000 will also be saved after 10 per cent of senior executive posts within the authority are scrapped. Other savings will be made by "stripping out duplication" across council departments.

Council leaders admitted that this would involve the loss of around 100 council posts below senior management level, but stressed that they wanted to work with staff to achieve them.

All of Sheffield Council's outside organisations have been instructed to make 10 per cent savings as part of the budget and also look to cut senior management to reduce costs.

Those organisations include Sheffield Homes, the arms length management company responsible for council houses, Sheffield Museums and Sheffield International venues.

Coun Clement-Jones said front-line services in the city would not be affected, apart from the closure of three public toilets and an introduction of rat-catching charges.

He said the 1.5 per cent increase would mean a rise of 24p a week for 60 per cent of Sheffield householders, whose properties are in band A, 37p a week for those in band D and 73p a week for those in the highest band H.

"We promised a council tax increase of no higher than 1.5 percent for this coming year, and that's what we're delivering, despite the economic downturn and the likely funding decreases from central government," said Coun Clement-Jones.

"This is the lowest council tax increase there's ever been. And what's more, we are still working towards achieving our promise of no increase in council tax in two years time, 2012/13."

New spending for 2010/11 will include 50,000 for the city's first ever rural strategy, which aims to recognise that a large part of Sheffield is rural, and 2m for community assemblies to spend on highways.

Sheffield Council's ruling cabinet is expected to agree the budget proposals at a meeting on February 17. The proposals will then be voted o n at full council on March 5.