£6M BLACK HOLE MOST VULNERABLE FACE HIGHER COUNCIL TAX BILLS
AUTHORITY COUNTS COST OF CORONAVIRUS PANDEMIC WITH AVERAGE BILLS EXPECTED TO RISE MORE THAN £100
THE cost of the coronavirus pandemic will affect the lives of every North East Lincolnshire family for years to come. Council chiefs are grappling with a £6million black hole in council finances and looking to increase council tax and cuts to services.
It is the highest overspend in the council’s history.
In a heated exchange between the ruling Conservative party and Labour and LibDem opposition at a Full Council meeting, councillors agreed to reduce the tax relief on those worst off. People living on benefits had been entitled to a 75 per cent reduction in council tax because of their low income.
An initial proposal to cut the relief to 50 per cent was withdrawn and councillors voted to fix the relief at 65per cent.
They voted 22 for the motion, which included the support of the only Ukip councillor Jane Bramley, who later said she had made a mistake and should have voted against the cut. Opposition group leader, Matthew Patrick accused the Tory administration of being “heartless and out of touch.”
“That cut will be passed on this year to the most vulnerable residents finding themselves paying the highest price for a disaster not of their creation. Perhaps this administration thinks this crisis is over, perhaps they just don’t care, either way, it’s obvious that the Tories will continue to punish those least able to defend themselves the most,” said Councillor Patrick.
The new Deputy Leader of North East Lincolnshire Council Stan Shreeve wept after a personal attack on his handling of council finances. Councillor Patrick said: “Why Councillor Shreeve, our new Deputy Leader is so indifferent to the suffering he places on residents, we might never know. Maybe it’s because he can’t get his sums to add up. Maybe he feels his
Tory masters in London are in greater need to be shielded from criticism than our residents are to be supported. Either way, he has failed in his duty to protect the vulnerable residents of North East Lincolnshire.”
Councillor Shreeve told the Grimsby Telegraph later: “It has been an unprecedentedly difficult year for the all the residents and businesses. the economic impact will be felt for some years to come. We are looking at revising our midterm plans and each of the divisions (departments) are formulating plans for services going forward.”
Senior figures had set up a “star chamber” to scrutinise all aspects of authority services to look for savings.
“We are confident that residents will get the right standard of essential services that they deserve. But services such as verges and gullies and road cleaning services may have to scale back,” he said.
The new North East Lincolnshire Council Deputy Leader, who is portfolio holder for finance said there are no plans to exceed the near-two per cent cap on Council Tax. The adult social care precept is expected to be around three per cent more, leaving a five per cent increase in Council Tax overall.
The Government’s annual settlement for local authority services has been agreed and council leaders are studying the figure and what impact that will have on services. Councillor Shreeve said: “It is unlikely it will make all the problems disappear. It is not without challenges and as an administration we are trying to make sure essential services are delivered to keep children safe and maintain adult social services. We are having very challenging and strident discussions. But in the current budget we expect to have a balanced outcome. There are some departments that will be challenged but, overall we will be in balance.”
He said: “We are working to minimise the impact on residents.” The council’s general reserves are not expected to be depleted, nor the earmarked reserves for special projects.
That leaves council tax as the only means to ease the £6million hole in council finances.
A Covid lifeline from central Government of £400,000 has helped the cost of the council’s response to coronavirus and ensuring the most vulnerable and those shielded get support.
But the costs of the much-needed improvement to children’s services with more staff dealing with complex care issues and the rise in social care costs have put the biggest pressures on council finances.
The number of children lookedafter out of North East Lincolnshire has also risen significantly.
And providing temporary accommodation for homeless people during the coronavirus crisis has put added costs on council finances. An average Band D property bill will go up by £95.37 extra, if the five per cent is agreed. Police and fire precepts will push that to over £100. A £20 per week increase for those on Universal Credit and Working Tax credit, funded from central Government, will continue until at least April. Councillors greed to lobby The Chancellor and Grimsby and Cleethorpes MPs to keep that increase going beyond April. Ukip councillor for South ward Jane Bramley said: “The extra £20 can go a long way especially for those that need it. Everyone is struggling, whether they are working or not. It is hitting families.”
She added: “It was my fault and my mistake for voting for the reduction.”
It has been an unprecedentedly difficult year for the all the residents and businesses. The economic impact will be felt for some years to come Councillor Stan Shreeve