Funding cuts and National Living Wage increases leave the Town Council with no choice but to raise the Council Tax next year.
The Town Council is currently in the process of setting its Revenue and Capital Budgets for the 2016/17 financial year.
The Council’s finances remain in a healthy position and in the short term the outlook remains fairly positive, with a balanced budget in place, savings continuing to be achieved in the current year, and healthy levels of balances and reserves
As a result, the draft 2016/17 Revenue Budget has been prepared in a way that will ensure that existing services are maintained next year.
However, the Council must also keep a close eye on what is likely to be an increasingly challenging future, and try to plan ahead now, for the difficulties that lie ahead.
The Council is reliant on Council Tax Support Grant funding paid by the Government, via Durham County Council, of nearly a quarter of a million pounds and which amounts nearly one-fifth of its Revenue Budget. It has been confirmed that this funding will be cut in the coming years, and there remains a risk that it could be withdrawn altogether.
The Council is also facing a number of significant spending pressures including the implementation of the ‘National Living Wage’, pension and national insurance cost increases, inflation and increasing pressure to take on services that are being cut by Durham County Council such as street lighting and flower beds.
Unfortunately, in order to maintain the Council’s own services, and absorb the cuts to funding and increases in costs faced over the longer term, the Council needs to consider making a small increase in the Town Council Tax next year.
This decision has not been taken lightly, particularly in light of the on-going cost of living difficulties being faced by local residents, and following on from the four year freeze in council tax delivered by the Town Council between 2010 and 2013.
However, by agreeing, in principle, to limit the proposed rise to 1.98% next year, the increase in the Town Council Tax Bill at Valuation Band A would be limited to less than £3 per year or 5p per week.
This increase will ensure that all of the important services provided by the Town Council to the community of Great Aycliffe can be protected and maintained for at least another year, whilst putting in place some additional resources to help the Council to fund the budget pressures faced in the longer term.
The Council is due to set its 2016/17 Precept and the Town Council proportion of the Council Tax in January next year, and I will keep local tax payers informed of future developments in relation to the budget via the Council website and in the local press.
Councillor Bob Fleming
Leader of the Council
