Council Due to Set Zero Per Cent Council Tax Increase

East Staffordshire Borough Council’s portion of this year’s Council Tax will see a 0% increase, despite a disappointingly low increase in the grant the authority receives annually from the Government.

The Council has received a small 0.8% increase in its grant settlement from government – equating to £9.5m overall, set against a higher average increase in grant for district councils.
Additionally, the East Staffordshire allocation has been reduced by around £39,000 to assist other councils from around the country, whose grants would not otherwise have increased by the minimum.

At the full Council meeting on Monday, February 22nd members will vote to approve the 0% increase for the ESBC portion of the bill, which will mean a budget of £16,573,000 for 2010/11.

In terms of our medium term financial position, ESBC?s strategy assumes a 12% cut in our grant, the amount promised by the current government, during 2011/12 to 2013/14. Impressively, ESBC?s budget is balanced throughout this period.

There is no need to draw down from reserves which other Councils are having to do. The Council is also aiming to set below inflation Council Tax increases over the next couple of years.

Andy O?Brien, Chief Executive said, “Although the Council, like others, face challenges because of reduced income from planning and car parks income (£410,000); a reduction in investment income due to interest rate reductions (£198,000); as well as pressure on the Government?s concessionary fare scheme (£123,000) due to inequity in the system, we are delighted to be proposing a 0% increase to a meeting of our Council members in February.

“We believe it will be the lowest in the Staffordshire and Derbyshire area and shows a 0% increase is achievable even with a public sector debt crisis about to hit local government hard.”

The Council has continued to transform its business by becoming increasingly more efficient and effective, as recognised by the Audit Commission, and has reduced the amount it spends on management, administrative and contract costs to achieve its goal. Indeed, ESBC has achieved efficiency savings of £1.3m in 2009/10 with a further £1.6m due to occur in 2010/11.

Councillor Richard Grosvenor, Leader of the Council, added: “This budget ensures value for money across Council services for our residents and is the lowest level increase in our Council?s history.

“Our capital projects also continue with our soon to be opened refurbished Meadowside Leisure Centre; our regeneration plans for Bargates, the inner Burton area adjacent to and including the Railway Station area, Derby Road, Burton and environmental improvements in Uttoxeter.

“There is even more room for continuing our popular „community-led development fund? and replacing CCTV hardware.

“All of this excellent progress has to be considered evidence of excellent financial management on behalf of the Council.”

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