2% hike proposed for 2015 as top Councillors discuss Council Tax

Council tax bills could be on the rise in 2015 after cabinet members at Selby Council indicated they would support a hike of up to 2%.

2% hike proposed for 2015 as top Councillors discuss Council Tax

News of the inflation-busting proposals came as top-ranking members of the ruling Conservative administration met to discuss the budget for next year in a meeting at Selby's Civic Centre on December, 12th.

The 2% rise refers to the district Council's precept charge, the portion of the annual Council tax bill that is not passed on to third paries such as County Hall or the Police. This means that whilst the average 'Band D' Household in the district contributed £162.00 to the district's coffers in 2014, this would rise to £165.22 once the the next financial year kicks-in in April.

But whilst the rise may be regarded as insignificant in terms of pure numbers – amounting to just 6p per week for Band D properties – it does represent a hike that is higher than the current rate of inflation at 1.3%. It could also set a marker for the further rises by the other bodies who take a slice of the full Council Tax bill.

Any rise would still need to be backed by a majority members at a meeting of Full Council before it could be implemented, something that would be unlikley to happen before February. Another factor would be whether Communities Sectretary Eric Pickles will repeat an offer made in previous years for Council's to freeze Council Tax bills in exchange for an enhanced grant settlement.

In a report to the executive committee Executive Director Karen Iveson wrote, 'In preparing the draft budget it has been assumed that Council do not to take up the offer of Council Tax Freeze Grant for 2015/16 due to the ongoing risk to the Council's financial position. The draft budget therefore includes a maximum Council Tax increase of 2% to avoid the additional cost of a referendum, which is not considered to be in the interest of Council Tax payers.'

Speaking to Selby Online, Council Leader Cllr Mark Crane (Con, SDC Brayton) said, "I have kept rate rises at or below inflation for the previous 11 years and wish to do the same this year, if the Government provides money to freeze the council tax I would support that."

Opposition members were sceptical however, fearing that any freeze could mean more cuts. Cllr Steve Shaw-Wright (Lab, SDC Selby North), "The Pickles Pound is nothing more than an election gimmick and cuts via the back door. Put simply, if SDC take the bribe, the Council effectively looses future funding to the tune of £40k per 1% year-on-year for SDC. So that's around 1.5 front line jobs every year. A small council like SDC can not afford to keep cutting.

"Pickles recently 'gave' SDC and NYCC £500,000 to develop working together, if Pickles had not cut the councils' budgets in the first place they could have done this themselves. In a nutshell Pickles takes a huge amount from SDC in cuts and then gives a little bit back and as a Council we are supposed to be grateful – what ever happened to Localism?"

It is not yet known if the Government will be prepared to offer Councils cash to freeze bills in 2015, but, in the run-up to the 2015 General Election, few would bet against it.