REDDITCH councillors have begrudgingly accepted a financial plan for 2016 to 2017 which, due to cuts in its grant, will see the authority actually paying the Government £330,000 by 2019.
If approved by full council it means residents will see an increase of about £4 to £5 a year on their council tax bill with the authority transferring some £550,000 from balances to cover the extra costs.
The council’s executive committee heard on Tuesday (February 2) that In the next financial year the town will see a 43 per cent drop in its Revenue Support Grant from the Government leaving it one of the hardest hit areas in the country.
The Government has calculated that Redditch needs a total of £7,254 million and will receive £5.397 million from council tax payments leaving £1.85 million needed. As the council expected to receive £2.187million in business rates in 2019 to 2020 it has concluded it will be owed £330,000.
Executive director Jayne Pickering said the Government had based its calculation on a spike year when council tax rates would be unusually high.
Coun John Fisher, (Lab, M’boro) portfolio holder for corporate management, said the council had managed to save £12 million over the last two years to carry forward.
“We need to stand up for Redditch. We deserve a better deal from the Government,” he said. “We have been doing what we can, working with councils inventing new services, services people really need.
“We will have some very difficult decisions to make and we need to carry on looking at everything we do to ensure value for every penny for the people of Redditch who need the support.”
However Conservative group leader, Coun Julliet Brunner (Con, M’boro) said the council was using its New Homes Bonus and reserves to plug the budget when the council had little in reserve compared to other districts who won’t be hit as hard by recent cuts to funding.
Both she and Coun Brandon Clayton (Con, A Bank / Feckenham) voted against the recommendations.
