Council agrees controversial 3.44% tax rise
Robin Harris SAS Wk 4
A LEADING opposition councillor has described Luton Borough Council’s decision to agree a council tax hike of 3.44 per cent and reject a government grant of £1.6 million as the “economics of the mad house.”
Liberal Democrat leader Councillor David Franks said that the tax increase is a “con trick and a rip-off” after it was approved at a Town Hall executive meeting on Monday night.
He told the Luton News: “In dumping a near £2.2 million extra burden on Luton council taxpayers the council is saying no to an extra £1.6 million in government grants and will only be £595,000 better off.
“That’s the economics of the mad house.”
Only six other councils say they are planning to refuse the government council tax freeze offer.
But deputy council leader Councillor Robin Harris told the meeting that central government cuts have left the executive in no position to reject the budget proposals.
He said: “This has to be one of the most difficult times I’ve had to face as a councillor.
“I certainly didn’t get into local politics to cut services or to increase council tax, but such are financial changes since May 2010 these are things we’ve now had to consider.
“This is not because of the council’s position but the position the council has been put in by the government.
“There’s absolutely no question as to our commitment to protect frontline services but we have to be realistic. It’s a question of when will services take a hit, not if, and when they do we’ve got to manage that in the best way possible for the people of Luton.
“I recognise how difficult this council tax increase will be for the people of Luton.”
Councillor Harris told the executive that accepting a government handout of £1.6 million if the council agreed to freeze tax for another year is not an option as it would leave a funding shortfall in the coming years which would in turn lead to greater percentage increases.
He said: “The bottom line is that this is not a freeze it’s a postponement.”
The increase will see residents living in band D homes paying an extra £39 a year with almost £16 million of savings needed in the 2012/13 financial year.
It was better news for council house tenants as the executive defied government guidelines to increase rent by almost eight per cent from April and agreed to raise rent by 5.78 per cent instead.
Councillor Tom Shaw said: “That increase should give us everything we need to get by.
“I’m not prepared to follow the government plan and if the government wants to have a go at me then they can do.”
The average council tenant will now pay £79.22 per week instead of the £74.92 charged now.
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Friday 25 May 2012
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