31 March 2006
Medway and City of York councils, the two authorities in line to have their budgets capped this year, were defiant this week.
Conservative-controlled Medway Borough Council in Kent, which is proposing a 5.5% council tax hike, said it would continue to press its case.
Council leader Rodney Chambers said: 'Medway is a responsible council that gives extremely good value for money. We have the fourth lowest council tax of any unitary council in the country. It's also important to remember that £1m was clawed back by the government in this year's grant from the previous year. Had this not happened, we would only have had to increase our council tax by 4.2% – well within government guidelines.'
Liberal Democrat-controlled City of York Council said it was disappointed. Head of finance Peter Steed said: 'It is unfortunate that due to the rigid criteria that the government uses, a council that has the lowest expenditure per head of population is likely to be penalised, especially when it has been independently assessed as providing good-quality services.'
Steed added that it would cost the council £120,000 to rebill, equivalent to £1.50 per council taxpayer. 'To meet the government's requirements, we would need to reduce the budget by approximately £280,000 – a reduction of 7p per week.'
Local government minister Phil Woolas said it was regrettable that a small number of councils had set excessive budgets and council tax increases.
York and Medway have 21 days to appeal.
PFmar2006
