By David Williams
Two police authorities have been threatened with council tax capping after proposing precept increases of more than 5%.
Two police authorities have been threatened with council tax capping after proposing precept increases of more than 5%.Local government minister John Healey announced on March 27 that Derbyshire and Surrey police authorities had been designated for possible capping. Derbyshire had proposed to raise its council tax precept by 8.68%.
Terry Neaves, finance director at Derbyshire Police Authority, told Public Finance that the tax rise would fund a budget increase of 4.99%, which he said was necessary to maintain current levels of operation.
Neaves pointed out that last year Derbyshire was the fourth-lowest spending police authority in England and Wales, and had achieved top ratings for resource management and value for money.
He argued that the authority had been hit by a drop in investment income and insufficient government funding for the relatively high level of risk faced by the force’s officers.
‘Although the fourth-lowest spending police authority, we don’t have the fourth-lowest policing risk. We think we have a very strong case to put to the government – we very much hope they will listen. We’re very concerned that any reduction will have a detrimental impact on policing in Derbyshire.’
Surrey Police Authority wants to raise its council tax bill by 7.07% to increase its budget by 4.82%. But it could become the first authority to be capped twice, as the government took action against it last year.A spokesman said the body was ‘shocked and disappointed’ to have been designated again.
Surrey Police Authority argues it has had a 24% real-terms cut in government funding over the past decade and now has to raise up to half its budget through the precept, double the proportion of other counties.
No local councils have been threatened with capping this year, after setting the lowest-ever annual council tax rise, averaging 2.6% across England and Wales.
The Local Government Association welcomed the decision not to cap any council. Chair Margaret Eaton said councils were working hard to help communities deal with the recession.
