Cabinet votes through 4.99% council tax rise
AMAXIMUM Council Tax increase of nearly 5% has been agreed for the residents of Sefton.
Sefton Council held a full cabinet meeting at Bootle Town Hall where the cabinet voted through the 2024/25 revenue budget and decided on funding for day-to-day services across the borough.
Households across England are bracing themselves for an above-inflation council tax rise after the Conservative government told local authorities they expect a maximum 4.99% increase in council tax to be applied in April.
As people across the country continue to struggle amid the cost of living crisis, the proposed council tax rise will create further financial pressure on households in Sefton.
The financial difficulties of local authorities has been widely reported across England with many leaders accusing the Government of passing on the burden of funding shortfalls to the poorest households.
In January, Secretary of State for Levelling Up, Housing and Communities, Michael Gove announced an extra £600m of funding for local authorities meaning an overall increase of £4.5bn.
However, details emerged showing the funding increase was predicated on every English local authority implementing a maximum council tax increase of 4.99%. As a consequence, if council tax was frozen the funding rise would only equate to 4% – the current rate of inflation.
The Local Government Association (LGA) made a submission to government ahead of the autumn statement on key core services putting huge pressure on council budgets – including children and adult social care, housing and homelessness and SEND budgets.
The LGA advised councils are facing funding gaps of £2.4 billion in 2023/24 and £1.6 billion in 2024/25.
These gaps relate solely to the funding needed to maintain services at their current levels.
The funding gap in 2023/24 is equivalent to councils stopping all spending on waste collection, library services and recreation and sports combined.
The new Council Tax rates for Sefton means the bill for an average band A household will see an increase up to £62, £72 for band B, £82 for band C and £93 for band D.
New Sefton Council Leader, Marion Atkinson delivered her first council budget speech and was quick to provide context to the council tax rises.
She said: “A 4.99% council tax increase will be passed onto our residents, not by Sefton Council, but by the Tory government and which we will reluctantly vote on tonight.”
“We have to make difficult decisions to deliver financial sustainability.”
Cllr Atkinson added: “Sefton has had a below national average settlement and the lowest in the city region.
“The residents of Sefton should expect and deserve better but despite all the unprecedented reductions this Labour council continues to give vulnerable people the support in the best way we can.
“This budget replenishes our reserves, protects our leisure centres, protects our libraries and all the other services people rely on as we take a fiscally responsible approach.
“It is with reluctance we have to look to increase council tax but we have been left with little choice by this government.”
Conservative member, Cllr Sir Ron Watson said there is a ‘very good reason’ not to vote for the proposed budget.
He said: “It is not and cannot be complete.
“The council has adopted a policy of shifting responsibility from the council directly and the elected members, to a series of companies and trusts on which we have no say.”
He added: “How can you make a decision on a budget without knowing that.”
However, Labour member Cllr Paul Cummins responded to Cllr Watson’s point and called it ‘absolute tosh’.
Cllr Cummins reiterated a series of points highlighting the accountability of council services and directed the member to what he said were relevant sources and reports and meetings available to the public.
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