Tax rise an option in funds shortfall

A RISE in council tax bills or service cuts is imminent after bosses announced a funding shortfall.

Hyndburn council chiefs have launched a 12-week consultation on three possible options – including a council tax rise. Other options are service cuts or a reduction in council tax support.

The exercise is a repeat of last year, when, following consultation, maximum council tax support was cut from 80 per cent to 73 per cent, equating to a 35 per cent hike in bills for the borough’s worst off residents of working age.

Hyndburn council leader Coun Miles Parkinson told the recent cabinet meeting: “It’s important to put into the mix that we are fortunate as a council that we’ve not had to increase council tax since 2010. The amount of people actually claiming council tax benefit is falling.”

Conservative group leader Coun Tony Dobson called for a balanced and thoughtful approach.

He told the meeting: “I think we are going to wait and see what the consultation comes back with and see what your recommendations are, based on that consultation.

“Obviously this affects some of the hardest hit members of our community. I understand from the controlling group that cash is short, but I think it just has to be a balanced and thoughtful review and consultation.”

Another cut in council tax benefit would see council tax support fall to a maximum of 70 per cent from April 2017, meaning a further 11 per cent hike in bills for some. Council bosses said it would add between £24 and £33 to an annual Band A council tax bill for nearly 4,900 households in the borough who receive council tax support.

If that option is rejected, Hyndburn council would have to raise £13,353 by increasing its council tax precept or making savings.

The council tax rise would add no more than £1.63 to an annual bill for taxpayers in Hyndburn. However, should a cut in council tax support be rejected, other local authorities including Lancashire County Council (LCC), would also have to address their own shortfalls, meaning overall tax bill rises could be much higher.

The consultation will run until October 14. Visit the council website.