13 July 2011. Green-led Brighton and Hove City Council has proposed to increase council tax by 3.5% next year - up from the 2.5% increase that was planned by the previous Tory administration. The tax increases will help protect vulnerable people from the worst central government cuts - but cuts will still need to be made, and the council intends to involve the public in setting the budget, by talking to bodies such as trade unions.
The additional 1% increase proposed by the Greens presents about £13 per year on annual council tax bills of around £1,300 for a person living in a typical band C house.
The increase of 3.5% is the maximum allowed under UK law, and is less than inflation which has been running at 4-4.5% over recent months.
A council spokesperson said: "Vital services for the most vulnerable residents in Brighton & Hove will be protected under budget proposals to change the council tax increase by 1% to 3.5% next year as part of a budget that will face unprecedented scrutiny. Brighton & Hove City Council has proposed a budget that aims to protect frontline services for residents including the 9,000 older people and one in five children in the city who suffer in poverty.
"In a major revamp of how the budget is set, the public will have much greater involvement as part of a city wide consultation. In addition all political parties, the voluntary sector and trade unions will be offered the chance to play a part in setting the budget priorities.
"The council faces central government imposed cuts of about £84 million over four years. The council tax proposal will help keep services running for vulnerable residents whose lives are affected by inequality, alcohol and substance misuse as well as domestic violence.
"Savings of up £51.8 million over the next 3 years are being targeted as part of a package that proposes to increase council tax by 3.5% in 2012/13 rather than 2.5% planned by the previous administration. The change from 2.5% council tax to 3.5% generates an additional £1.2 million for the council.
"Promoting efficient use of public money is central to the budget process, as is supporting the local economy in a sustainable way by working in partnership with public, private and third sector organisations. The budget proposals will go to full public consultation in the Autumn.
Councillor Jason Kitcat, Cabinet Member for Finance & Central Services, said: “We believe this small rise is needed to help protect vital frontline services that support some of our most vulnerable residents such as older people and children who stand to suffer because of the excessive and unnecessary cuts imposed by the Coalition government. This is part of our vision to create a fairer society that meets everyone’s needs.
“The previous administration planned to increase council tax by 2.5 per cent so we think that most residents will agree that a further one per cent rise to protect some of our most important frontline services is a price worth paying.
"As it stands the city faces deep inequality with thousands of children and elderly people languishing in poverty, women suffering domestic violence as well as high levels of alcohol or drug abuse.
“Everyone has to reduce spending in this recession and the council is no different. The government is forcing us to reduce spending by £84 million over the next four years despite significant efficiency savings we have already achieved. To that end we will be reducing spending by up to 15% over the next two years. This council’s entire approach will be focussed on value for money.
“At the same time we are lobbying the government to review the current council tax system and introduce a more progressive local taxation that is fairer to everyone. In a recent meeting I have personally asked local government minister Grant Shapps MP to reconsider the cuts he is imposing on Brighton & Hove.”
The proposed council budget-setting process will go to Cabinet for approval on 14 July with the proposed budget to go to Cabinet for approval on 8 December before being considered by Full Council on 27 February 2012.
New, Consultative Budget Process
Brighton & Hove City Council’s Budget Council takes place 27 February 2012. The budget process allows all parties to put forward viable budget amendments and council tax proposals.
The proposed new consultation process will involve:
• more in-depth public consultation in September/October through a process to be agreed by all political parties;
• greater scrutiny both early in the process on particular issues and in considering published proposals in December / January;
• for the first time cross-party review and challenge of the options as they are developed within the “star chamber” process
• consultation with business rate payers;
• roundtable discussions involving all political parties, recognised trades unions and the Community and Voluntary Sector Forum
• formal and informal consultation with Trades Unions and with staff affected
• formal consultation with service users as needed
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