Richmondshire council tax set for modest rise (From The Northern Echo)

Richmondshire council tax set for modest rise

4:24pm Wednesday 3rd February 2010 in

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COUNCILLORS at a district council affected by the economic downturn are to be asked to approve a modest rise in council tax.

Richmondshire District Council officers have released a report where they ask councillors to approve a 2.5 per cent rise in the council tax for the coming financial year.

The proposed increase would see council tax levels rise by £4.61 for the year, from £184.32 to £188.93, for a band D property.

The annual increase of £4.61 represents an increase of just under nine pence a week.

The district council’s strategy board will meet in public at Swale House, in Richmond, on Tuesday (Feb 9) from 6.30pm to discuss the proposals and also look at other options.

These include increasing the council tax by three per cent, 1.5 per cent or leaving it at the current rate.

The three per cent option is classed by officers as risky because, although it would generate an extra £18,000 of income, it is on the limit of increase allowed by the government and could see the council having its council tax capped.

The administrative cost of capping is estimated at £50,000, far outweighing any benefits.

The lower increase of 1.5 per cent and the option of leaving the rate as it currently stands are also not recommended because they would stretch the council’s finances further when it is not necessary.

Last month councillors agreed to set the council’s budget for 2010/11 at £8,351,050, which left a deficit of £610,475.

The strategy board approved short term measures to cover the shortfall, which included using windfall grants and one-off efficiency savings.

In the council tax report, officers note that the council has a long term budget issue that must be addressed and will be considered in full by the strategy board in the coming months.