Swadlincote councillors push for 'near maximum' council tax rise

Swadlincote councillors have pushed for a near maximum council tax rise to avoid the district council "running out of money" in the next few years.

At a meeting last week, members of South Derbyshire District Council's finance committee debated the upcoming council tax increases.

Key officials painted councillors a grim and clear picture of the risks which the authority would face if they did not elect to hike its share of the council tax bill by a much higher proportion.

Councillors were warned that due to continued cuts to money received from central government, the authority faced using more and more of its emergency funds.

Officers said that the general reserve – the rainy day fund for emergencies – could end up without a safe amount to spare to ensure services are kept running.

Going into this year's budget season, the district council had been lining up a 1.95 per cent increase to its precept, which would be £3.28 extra per year for Band D homeowners, totalling £171.24 to the authority.

Most of your overall annual council bill goes to Derbyshire County Council (around 75 per cent) while around 10 per cent goes to the district council, 10 per cent to the police and five per cent to the fire service. Some areas will also have a fee for a parish council.

All in all, a Band D council tax bill totals more than £1,800 a year.

At last week's meeting, Cllr Kevin Richards, the authority's Labour leader, proposed a hike to the council's precept of £4.95 a year for Band D homeowners – which is 2.95 per cent – to a total fee of £172.91 to the district council.

Vicki Summerfield, the council's head of finance, said the authority aims to have at least £1.5 million in its general reserve at all times.

However, on the assumed 1.95 per cent council tax rise, this would leave the authority with around £900,000 by the financial year 2025/2026.

She said one boost to the council's fiance this year was the surge in house-building in the district, with 1,484 homes built in the past year. This and forecast house-building in the next four years will provide the council with an extra £563,000, she said.

Ms Summerfield said the council had lost a further £417,000 in Government funding in the past year, with more reducations on the way in the next few years.

Chairman of the committee, Cllr Robert Pearson, said the authority's financial position was "complex" and there was "quite a degree of uncertainty going forward".

Kevin Stackhouse, strategic director of corporate resources, said: "My advice for all members is that we need to safeguard a sustainable financial position, we can't keep using reserves – we will run out of money.

"I would urge all members to look at the largest council tax increase you feel comfortable with delivering."

Cllr Richards said the authority, Labour led but without a majority, needed to present a united front on how much to raise council tax by.

He said the cost of living difficulties for the district's communities were going to prove a huge challenge and said "there are now more foodbanks than McDonald's".

Cllr Richards said: "This authority, through different administrations, has been proud to keep council tax as low as possible, but it is a different situation now and we must take that into account.

"We have continued to buck the trend so far when the Government has given an opportunity to increase by two per cent or £5.

"£5 is not much over the course of a year. We would like to move a £4.95 increase.

"We would like to educate the public that we do not get much of that overall, it (the council tax bill) is not all to us, it goes to the county council, police and fire."

Cllr Martin Fitzpatrick, leader of the Independent Group, said: "For the sake of 5p I am somewhat in agreement.

"We are toying with a lot of unknowns for the next five years.

"While most of us could afford £5 extra a year, some of us can't."

Mr Stackhouse reminded councillors that the £5 extra would not be for all homeowners, just those in Band D.

Residents in lower bandings (A, B and C) would see a smaller increase, while those in higher bandings (E, F, G and H) would see a larger increase.

He also says there were already support systems in place "for those people who need it".

Cllr Trevor Southerd, deputy leader of the council, said that due to reduced Government funding the authority has been left with "little alternative" but to raise council tax by a larger proportion.

He said: "I think we would be failing our duty if we did not support this."

Cllr Amy Wheelton, an independent councillor, warned that several councils had declared effective bankruptcy and others had been put on notice.

She said: "If we do not take this money we can't do the services we offer.

"Throughout the pandemic, while other councils struggled, our bins were emptied every week.

"I hate to increase it but we have to. If we don't do this then it has become clear, from other councils, that it becomes impossible to catch up.