Ashfield District Council blames Government cuts for Council Tax raise

The authority approved its budget for the coming financial year 2016/17, including a rise in council tax and far ranging changes.

Councillors met on Wednesday to rubber-stamp their budget, which includes savings of £1.005 million this year in the face of continued reductions in Government funding.

During a heated meeting, opposition councillors submitted an amendment calling for a zero increase in Council Tax, which was rejected.

Council Tax for 2016/17 for a property in Band D will be increased from £175.46 to £180.46, an increase of £5 or 2.85 per cent.

The council tax rise has been set at the maximum possible - any increase above £5 at Band D would be subject to a referendum.

For band A this will mean an increase of £3.33 or 6p a week.

The new Council Tax rates for this coming year are: Band A £120.31, Band B: £140.36, band C: £160.41, band D:£180.46, band E: £220.56, band F: £260.66, band G: £300.77, band H £360.92.

How does it affect your band?

Band A property Annual increase of £40

Band B property Annual increase of £46

Band C property Annual increase of £53

Band D property Annual increase of £60

Band E property Annual increase of £73

Band F property Annual increase of £87

Band G property Annual increase of £100

Band H property Annual increase of £120

Presenting the budget plans, Councillor Jackie James, portfolio holder for corporate service, said the decision was set in the context of the continued significant reduction in Government funding which is being suffered by Ashfield and many other district councils.

Coun James said: “We have had to present a budget in the context of a frightening level of cuts from central government. Our resources the Government deems adequate for the needs of Ashfield’s residents are now 40 per cent lower than in 2010 having fallen by 12 per cent in 2017/18 alone.”

She said the behaviour of the government had been particularly unacceptable this year.

The Government reduced without prior notice in December another funding source, the New Homes Bonus (NHB) which will eventually settle at £1 million lower than previous assumptions.

Money from the New Homes Bonus (NHB) will be diverted to upper-tier councils to fund adult social care,

The council’s NHB payment will fall from £2.6 million in 2017/18 to £1.2 million in 2022/23.

The council’s overall resources are predicted to fall by a total of £2.734 million between 2016/17 and 2020/21, or a further 29 per cent.

Deputy Leader Councillor Don Davis said: The removal of the New Homes Bonus has made it virtually impossible to set a budget for the next three or four years.

“The is part of our baseline and an attack on that is an attack on our residents.”

The opposition group including Independent and Conservative councillors proposed an alternative budget with no Council Tax increase.

They asked the council to withdraw its proposals relating to Huthwaite Leisure Centre which is under threat of closure unless an alternative way of running it can be agreed.

They also proposed cutting councillors basic allowance by £1,200 a year and the leaders, deputy leader’s and cabinet allowances. They said this would save £80,000.

They also proposed reducing a director’s post saving £90,000 and unsubscribing to the Local Government Association, saving £10,000.

The result would be to increase net expenditure by £36,000 which could be met from the authorities General Reserve. They claim the council is sitting on an £8 million pot of cash.

Independent councillor Jason Zadrozny said: “I agree the council is in a dire financial position but politics is about choices and we have shown you choices .

He added: “We should have saved Huthwaite Leisure Centre for another two years and we would have taken a £1,200 cut in our wages.

“You have balanced the books on resident’s misery and by closing the only services they have.”