Heat is on as Taunton Deane Borough Council breaks council tax freeze
A Somerset council became one of the first in the country to break the Government’s order to freeze council tax as the reality of Whitehall cuts began to bite.
Leaders at Taunton Deane district council passed a 3.45 per cent increase in council tax, saying they were being forced to because of a £2 million shortfall in the budget for the year ahead.
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Taunton Deane Borough Council leader Cllr John Williams
Meanwhile, council chiefs across the West wielded the axe yesterday, but said job losses and budget cuts were being forced on them by central Government penny-pinching.
And although so-called “back-room” staff face an uncertain future from Somerset to Gloucestershire, tens of millions of pounds look set to be invested by West councils in infrastructure projects such as new schools, high-speed broadband and new care homes.
Civic leaders from Taunton to Swindon are wrestling with the latest cutbacks in the amount of grants they get from Whitehall – their share of the nationally collected business rates – and councillors have been at pains to pledge to protect front-line services in 2012, after the confrontations over proposed library and youth club closures last year.
In Taunton Deane, central Government funding has been cut by £1.6 million over two years, with another million expected to be shaved off the grant settlement in the next two years. That means the council will have to make up a £2.1 million shortfall in this year’s budget with a 3.45 per cent increase to council tax – despite the Government striking a deal with councils to limit grant cuts if they can maintain the freeze on tax bills.
Only a handful of councils have so far threatened to break that informal deal, and now Taunton Deane risks the wrath of Local Government Minister Eric Pickles.
Taunton Deane council leader John Williams, said: “It has been an incredibly difficult budget setting process. Faced with large reductions in our budget, a drop in income from virtually all sources because of the economic downturn, we had a budget gap to address in excess of £2 million.
“I commend all members of the council and officers for grasping the seriousness of this situation and working constructively towards a solution. What you are seeing now is a result of the hard work and commitment of many in taking the very difficult decisions necessary to arrive at a balanced budget.
“I am pleased to say that despite very challenging times we have focused our reductions on efficiencies within the council and, in the main, preserved frontline services for the community,” he added.
Meanwhile, Bath and North East Somerset council said it would be able to make £12million of cuts with almost all the savings coming from back-room cutbacks.
4 Comments
by IBM_Out
Sunday, February 05 2012, 5:56PM
“So much for election promises just last year!
http://tinyurl.com/887reln
Thursday, 7 April, 2011
Cllr John Williams, Conservative Leader of the Council, says: "In these hard times when many costs are rising and people are worried about their jobs I am determined to keep Taunton Deane's Council Tax down. We did not increase council tax at all this year. Now, if elected, we promise not to increase it next year.
I am confident we can do this with minimum impact on front line services by efficiency savings and some increases in fees and charges. You have told us you would prefer this to putting up your council tax. The Government's promise to plug the gap for Local Authorities whose council tax increase is less than 2.5% will also help us to keep Taunton Deane's Council Tax increase to 0%.”
by IBM_Out
Friday, February 03 2012, 7:55AM
“http://tinyurl.com/7jorzkp
The elephant in the room here is the disastrous shared services contract with IBM for Southwest One.
Assured savings claims for Somerset County & Taunton Deane Councils of £200m were made back in 2007, when the contract was signed by the Lib Dems (led by Ross Henley), together with unequivocal support from the Conservatives and Labour.
This article fails to mention that a shortfall in promised savings by Southwest One has resulted in another£2.1m of borrowing and £61k per year in interest charges.
The double whammy is that whilst this additional borrowing is being paid off, Southwest One will continue to fall short on even a small fraction of the promised savings.
Nothing in the article above about the impact of reduced income due to SW1 not making savings.
Expect all political parties at the Deane to vote this through at the full council meeting, as they all thought that handing over services and cash to IBM for Southwest One was "the only game in town".
So, whilst fat cats in IBM get big bucks, council tenants in the Deane will pay another 7% for on their council rents (£5/week) & when they are having nothing or very little in the way of a pay rise this year (or next).
Why not hold IBM and Southwest One to account for their failed promises, instead of passing the buck to council taxpayers and council house tenants?
Neither IBM or Southwest One will be knocking on our doors come the next election, when Councillors seek our vote.”
by IBM_Out
Friday, February 03 2012, 7:53AM
“Another damning article on IBM/SW1: http://tinyurl.com/7jorzkp
The elephant in the room here is the disastrous shared services contract with IBM for Southwest One.
Assured savings claims for Somerset County & Taunton Deane Councils of £200m were made back in 2007, when the contract was signed by the Lib Dems (led by Ross Henley), together with unequivocal support from the Conservatives and Labour.
This article fails to mention that a shortfall in promised savings by Southwest One has resulted in another£2.1m of borrowing and £61k per year in interest charges. Extra borrowing exacty matches Southwest One shortfalls.
The double whammy is that whilst this additional borrowing is being paid off, Southwest One will continue to fall short on even a small fraction of the promised savings.
Nothing in the article above about the impact of reduced income due to SW1 not making savings.
Expect all political parties at the Deane to vote this through at the full council meeting, as they all thought that handing over services and cash to IBM for Southwest One was "the only game in town".
So, whilst fat cats in IBM get big bucks, council tenants in the Deane will pay another 7% for on their council rents (£5/week) & when they are having nothing or very little in the way of a pay rise this year (or next).
Why not hold IBM and Southwest One to account for their failed promises, instead of passing the buck to council taxpayers and council house tenants?
Neither IBM or Southwest One will be knocking on our doors come the next election, when Councillors will be out seeking our votes.”
by Taki123
Friday, February 03 2012, 2:33AM
“Local tax should be voluntary, those opting out can use private service. The competition would force the council servants to compete.”