Government decision forces Croydon Council to reassess budget plans
By Ian Austen
ian.austen@essnmedia.co.uk
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POURING OVER THE FIGURES: Council leader Mike Fisher says the original budget plans are being looked reexamined
Setting next year's council tax rise has been thrown into turmoil as finance chiefs continue to grapple with outside pressures on the budget.
Rumours reaching the Advertiser suggest the average increase could be in the region of two to two-and-a-half per cent, a drop from four per cent last year.
But at this week's meeting of the council's scrutiny and overview committee, council leader Mike Fisher told members that councillors and officers were still working on a final figure.
The budget is due to be presented to the council cabinet meeting being held on February 22.
The cabinet has already accepted a programme of £15 million of efficiency savings and £1.6 million of cuts to balance the books and keep the council tax increase down.
Councillor Fisher told the committee the original budget plans were having to be looked at again in the light of the Government's confirmation last week that it is cutting its grant for the Freedom travel pass for the elderly and disabled.
In Croydon's case this means the council is having to find another £1.25 million to provide its share of funding for the pass - the equivalent of a 0.7 per cent council tax increase.
Cllr Fisher also says negotiations are still going on with the Government over payments from the UK Border Agency.
Dealing with housing and social services needs for asylum seekers, particularly unaccompanied minors, is costing the council just over £2 million a year.
Whatever the final figure, Cllr Fisher promises the downward spiral of tax rises since the Conservatives took control of the council in 2006 "will continue this year".
After the meeting, Cllr Fisher was scathing about the Government grant cut for the Freedom Pass.
He said: "It is outrageous that the Government decision was announced just a few days before the council was setting its budget.
"We are having to look at the whole budget to see what can be done."
5 Comments
by Arfur Towcrate, Staffycher
Sunday, February 14 2010, 6:14PM
“Fruitbat, 100% of council tax goes on funding the local council. However, most of the money that local councils need/use comes from central government and business rates.”
by Fruitbat, south norwood
Friday, February 12 2010, 8:55PM
“Most of our council tax money goes up north.........”
by David, Croydon
Friday, February 12 2010, 1:19PM
“This is a typical example of how central government works. They will tell us how they are maintaining spending and limiting tax rises. In reality they cut the money they give to councils while also expecting local councils to take on the burden for costs that were previously funded centrally. When the councils complain they act as if it is nothing to do with them and the council is at fault.
Mind you, we all know that local government is hugely wasteful, with too many layers, too much checking and re-checking and a pension system that needs to be brought in line with the private sector. On that basis I would expect whoever is running the council to be able to make huge savings in coming years.”
by Mark, Croydon
Friday, February 12 2010, 12:37PM
“Thr problem is that Croydon gets the smallest amount of money from the government of any borough of its size in the country (the second lowest of any borough in the whole of Loandon.) The government forces more and more things on the local council (freedom passes, border agency) but does not give them the money to pay for it all. When Labour ran the council we had increases of 17 and 23%. The Conservatives have keep (and will continue to keep) council tax rises below 5%. This has to be done to pay for everything the government wants croydon council to do. It is out of croydon's hands. If the Labour government gives croydon a fair deal then council tax could be lowered.”
by RobinHood, Sherwood
Friday, February 12 2010, 10:12AM
“We should be hearing about Council Tax Decreases if the Council is being run efficiently.
Budgets have become a annual tradition.There is still the 'use it,or lose it' mentality within well out of date public offices.
Running a Council should be just like running a household.The first year of moving into a new house there is often a large outlay This decreases year on year allowing for funds to build up for future wants,not needs.
Regular maintenance takes care of the rest.
Why must Councils spend spend spend year in year out?
Simple its tradition.”