3.9% and the Lost £6m

Started by marky, January 06, 2016, 04: PM

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marky


steveL

Although the Government's 'living wage' will have an impact on the council's costs in the longer term, this is not true for next year as the council's own living wage, introduced a couple of years ago, already pays more than the Government's phased introduction.

Incidentally, the council unions rejected the council's plans designed to help pay for their own scheme and as a result the cost of it had to be covered by taking money from elsewhere in the council's budget.
Diplomacy is the ability to tell someone to go to hell in such a way that they look forward to the trip.

testing times

I make that 39 times the rate of inflation.

Land Phil

Sharpening my pitchfork, waiting for the invite to the revolution.

steveL

The Official Press Release:

Government cuts may lead to rise in Council Tax


Published Wednesday, 6th January 2016
The announcement just before Christmas that Hartlepool Council is to lose a further £2.1m in Government grant for 2016/17 – on top of the £2.8m reduction it was already anticipating could lead to a rise in Council Tax from April.

The authority is also reeling from the loss of £3.9m in Business Rates every year following a recent decision by the Valuation Office Agency to reduce Business Rates paid by Hartlepool Power Station.

In a report to the Council's Finance & Policy Committee which meets on Monday 11 January, the Council's Corporate Management Team – led by Chief Executive Gill Alexander – is recommending an overall increase of 3.9% to ensure a "sustainable financial strategy".

Hartlepool Council has been able to freeze Council Tax for the last five years – the only Tees Valley council to do so – but the report states that the Government acknowledges that the era of Council Tax freezes are now over.

The report says that previously councils were encouraged by the Government to freeze Council Tax and received a financial incentive to do so. However, this is no longer the case due to a change in Government policy which is also
shifting the responsibility for funding social care from itself to councils.

This policy change is recognition by the Government of the financial pressures in Adult Social Care services, including the impact of the Government National Minimum Wage which comes into effect in April 2016.

From this April, the Government's settlement announcement 
assumes that local councils will increase the level of Council Tax by 3.9% per annum – inclusive of the Government's new 2% Social Care Levy.

This means that councils that choose not implement a 3.9% rise have to find additional savings each year over and above the savings already identified.

If councillors agree to the rise, the report says that the Council will be able to fund the remaining loss in Government grant through savings and the use of 'one-off' resources.

The report highlights that a 3.9% increase will result in the large majority of households (72% in Bands A and B) facing an increase of 83p per week. For the 96% of households receiving Local Council Tax Support, the increase will be no more than 10p per week.

It also says that further significant cuts in Government grant are on the way and that by 2019/20, Hartlepool Council will have seen its funding cut by two-thirds (£38m) compared to 2011/12 when the austerity cuts were first introduced.

Councillor Christopher Akers-Belcher, the Leader of Hartlepool Borough Council described the Government's financial settlement as a "ruthless attack" on the people of Hartlepool.

He added: "The further Government grant reduction announced in December and changes in Government policy in relation to how councils are funded have left councillors with some incredibly tough decisions and stark choices.

"This comes at a time when we have set out our ambitions for taking the town forward for the benefit of residents, businesses and visitors, but we will not be beaten in our endeavours.

"The Council has managed to freeze Council Tax in Hartlepool for the last five years but the ongoing immense financial pressures being imposed by the Government and their change in Council Tax policy means difficult choices need to be made regarding the level of Council Tax and service cuts.

"I am sure there will be a very open, frank and meaningful debate at Monday's Finance & Policy Committee and whatever recommendations are reached will  be subject to a meeting and final decision involving all 33 councillors at a meeting of the Full Council on 18 February."


Press release PR16314. 6 January 2016.
Issued by Alastair Rae, Public Relations Manager, on 01429 523510.
Diplomacy is the ability to tell someone to go to hell in such a way that they look forward to the trip.

DRiddle

Double bluff? Sweeten the pill by 'only' increasing it by 1.9% or do people think Labour will go for the full 3.9% Obviously we can debate it all night next month but they'll have already decided what they'll do.

I think given the coalition are pretty much assured control of the council until at least 2018 they'll probably just whack it up by the full 3.9%

fred c

Quote from: Land Phil on January 06, 2016, 05: PM
Sharpening my pitchfork, waiting for the invite to the revolution.


We just need to remember what happened when the people of Hartlepool turned up for Full Council Meetings...... to be blunt about it.

The LabTor Mobs A**s`s fell out & it resulted in Lying Ste & Cranney making a spectacle of themselves.

The only way to bring about change is to do something about whats going on, even if that is 1 night a month in the Kremlin.

Come March time, any candidates who are planning to stand against LabTor Councillors will need help in leafleting, knocking on doors canvasing, even a donation  to election expenses.

Lets face it, we either get together to act & vote tactically (even if the candidate in your ward isn`t someone you would normally vote for) to get shot of the likes of Lying Ste & Cwis or we end up with another 4 years of this shower.

fred c

Quote from: DRiddle on January 06, 2016, 07: PM
Double bluff? Sweeten the pill by 'only' increasing it by 1.9% or do people think Labour will go for the full 3.9% Obviously we can debate it all night next month but they'll have already decided what they'll do.

I think given the coalition are pretty much assured control of the council until at least 2018 they'll probably just whack it up by the full 3.9%

If they do, it will provide a massive focal point for opposition councillors & candidates in May`s elections to seize onto.

Hartlepudlion

Please note the last paragraph.

The Finance and Policy Committee will meet on Monday 11th January. Scheduled to start at 0930.

Everybody who is able to attend should do so. Unlike Council Meetings you AREallowed to ask questions.

fred c

Yeah see u there.... it would be good to get 20 or 30 people there.... to ask those running the council, questions about about the way they spend council tax payers money

Land Phil

Like many others I will struggle to get time off work but will do my best to be at the full council meeting.

I do hope the full meeting turns into a public protest.
I am sure there will be no opportunity for anything else in the face of the blinding ignorance of Mary. "I am Mary Fleet" and that hand up my ar** operating me says no democracy again.

Reading the article again I am offended at the use of the word ruthless.
It should read ruthless spending as bill payers suffer even further.
Is Mark Payne a puppet, wimp or both ?

Time to shut down non essential services, scrap all visions and put food on the table.

Land Phil

Seeing little Iain's article about trains shows he obviously doesn't keep up with what is going on in the town, just his little world.

Has he not heard about the proposed crippling council tax rise ?

DRiddle

Speaking of our trains. I've mentioned before that Middlesborough's MP Andy MacDonald has been on the case for ages trying to get a direct train to London for Boro.

He's front bench in the Labour Party now. . . Interesting post he's been allocated.

http://www.gazettelive.co.uk/news/teesside-news/middlesbrough-mp-andy-mcdonald-named-10698934

No prizes for guessing how this could end in terms of a train from Teesside to London.




DRiddle

Just on the issue specifically of the potential 3.9% hike in council tax, what are people's views? I've firmly nailed my colours to the 'don't raise it' mast, which should be confirmed in The Mail today or tomorrow.

My main reasons are (a)It was crazily high 5 years ago and even though it hasn't risen much lately, it's still really high now. And (b)Any authority willing or able to fund a company started by Angie Wilcox and Kevin Cranney to the tune of a million quid, has a damn cheek asking residents for even more money and crying poverty.

The last time I checked, it wasn't David Cameron who funded 'WCNE' a million quid and allowed the money to go through the payroll system of MRA.

I doubt the quote of mine above will find it's way on Labours election leaflets like the one I made about the hospital trust.  ::)


Inspector Knacker

Quote from: Land Phil on January 07, 2016, 10: PM
Seeing little Iain's article about trains shows he obviously doesn't keep up with what is going on in the town, just his little world.

Has he not heard about the proposed crippling council tax rise ?
He said he was going to Newcastle to see Star Wars, isn't it showing at our local cinema?
What can be asserted without proof,
can be dismissed without proof.