Councillors agree 3.9% tax increase

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Sunday, 16 February 2020 01:15

By Carmelo Garcia - Local Democracy Reporter

Herefordshire residents will have to pay more towards their council tax bill from April as councillors approved a 3.9% rise last week.

This means an average band D property owner will be expected to pay an extra £59.28 a year towards the running of council services.

The Conservative group attempted to reduce the above-inflation increase to 2.9% and gained the support of the Liberal Democrats but this was rejected by Herefordshire Independents, It’s Our County and Green Party councillors.

Conservative group deputy leader Nigel Shaw, who proposed the reduction, said: “The annual cost of this will be approximately £1m, the new homes bonus allocated in the government settlement of £2m will fund the reduction for the next two years.

“We are aware that with inflation at 1.3% asking council taxpayers to find 3.9% is seen by many as unreasonable.

“With an unexpectedly high new homes bonus this year there is the opportunity for the council to be responsive to the taxpayer by reducing the council tax increase.”

The Tories proposed two options, one of which would have taken £800,000 out of a pension contingency fund, to go towards addressing the phosphate pollution in the River Lugg but after losing the first vote coun Shaw withdrew this proposal.

Finance and corporate services cabinet member Liz Harvey highlighted the impact central government cuts have had on the council.

“To balance our budget we have reluctantly decided to increase council tax by 3.9%.

“This is to meet the rising demand and cost of adult social care, whilst also maintaining a range of valued services which provide many benefits for our residents.

“Since 2011, Herefordshire Council has seen a 99% reduction in central government funding, with the revenue support grant decreasing from over £60 million to £600k in 2019/20.

“Meanwhile, the costs of adult social care and looked after children account for more than 80% of the council’s budget.

“The council tax reduction scheme will continue at a discount of up to 84% for people facing financial hardship and a discount of 100% for young people leaving care.

“The council continues to offer a hardship fund to assist people in exceptional circumstances.”

She said the council has an annual budget of £380m which is used to deliver services to over 187,000 residents.

These services include maintenance of over 2,000 miles of roads, collection of over 85,000 residential bins, safeguarding around 1,000 children and providing care and support to 2,500 vulnerable adults.

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