Liberal Democrats at County Hall today branded the ruling Tories “callous and irresponsible”. This follows the Tories’ decision to impose a Council Tax increase of 4.75%, twice the rate of inflation. This means an increase of around £45 per year for a band D household.

The Conservatives voted against a Liberal Democrat amendment to the budget calling for a lower increase of 3.75%.

This year the County Council received a generous grant settlement from Government that was £3 million pounds more than expected. It also has £60 million in total reserves (compared with £26 million predicted two years ago) and is expecting to finish the financial year having underspent more than £7 million, an amount equivalent to a 3% tax rise.

The Government has warned local authorities that it expects Council Tax rises to be “substantially” below 5% or they will be capped. Capping means that the Government will set the Council Tax rate and the County Council will have to stump up the costs of sending out revised tax bills to council tax payers. This could cost up to £500,000.

The Liberal Democrats instead proposed a 3.75% tax increase, with a small element of reserves used to ensure no cuts to services.

County Councillor Bill Hoult, Leader of the Liberal Democrats at County Hall, comments:

“The wage earner in an ordinary family is looking at a 2% pay rise, heating and lighting costs rising by 15-20% and petrol costs at over £1 a litre. They will not understand why, having underspent by £7 million on this year’s budget, the Tories are imposing such a huge tax increase of double the inflation rate.”

“The Council is also taking an incredible risk in challenging Government guidance. It is ludicrous to suggest that 0.25% is substantially below 5%. With the Council’s good settlement and massive reserves it is asking to be capped.”

“The Liberal Democrats will continue to campaign for the unfair Council Tax to be abolished and replaced by a fair alternative based on ability to pay.”