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Council tax rise lowest for fifteen years
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"30/03/2009
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In response to figures showing an average 3 per cent rise in council tax, Cllr Margaret Eaton, Chairman of the Local Government Association, said:
“Councils understand that people are feeling the effects of the recession and they’ve been working flat out to keep council tax down. This is the lowest rise for over fifteen years and works out at 79p a week, less than a loaf of bread.
”Town halls are working hard to keep local businesses afloat and to help people deal with the impact of the recession. Many councils revised down council tax rises this year to minimise household costs for residents.
”Town halls are having to tighten their belts in exactly the same way as hard-pressed families are. Council income is falling sharply at a time when more and more people are turning to the town hall to help people through tough times.
“Given that town halls have made such efforts to keep council tax down this year we would not expect the Government to cap any councils.”
LGA research shows that:
Council income is projected to fall by £2.5bn over the next financial year. A half of councils have already cut jobs because of the recession and seven in ten anticipate making further cuts. Town halls are reporting a significant uptake in their services with more people applying for housing benefit, a rise in homelessness and an increase in demand for debt advice. 78% of councils have had to revise their overall budget position because of the recession.
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