Increase not to exceed current rate of inflation

5 February 2010

Cheshire West and Chester Council Leaders look set to honour their pledge to council taxpayers by recommending an increase for 2010-11, which does not exceed the current rate of inflation.

A report to next Wednesday's Executive from Director of Resources, Julie Gill, advocates at an increase of 2.5% - an average weekly rise of 49p per household over the eight council tax bands.

If agreed the increase would bring the annual bill for the average Band D property in West Cheshire, to £1,254.59 - a weekly increase of 59p.

And today (Friday) Cllr Les Ford, Executive Member for Finance, said: "I'm delighted that we have been able to keep our promise to the people of West Cheshire - despite the worst financial climate this country has seen in decades.

"Against this precarious background, the Council has been re-structured. Over £35m of savings have already been made and we are looking for almost the same amount again."

Added Cllr Ford: "The future will not be easy and there will be difficult decisions ahead. We are, however, ever more determined to create a council that serves all its people in the way they would want."

The Director's budget report highlights the 'particularly difficult financial scenario' facing a council faced with a rising demand for its services and falling opportunities to recover costs.

The authority will spend over £746m on services during the year but needs to find a further £30m in efficiency savings over the next three years to meet the Government's widely predicted public spending cuts.

In order to balance these financial pressures with the need to limit council tax rises, it is re-thinking operational strategies and targeting resources where they will have the most impact.

To help meet this demand for savings - it is proposed to cut a total of £6,941m from service budgets but avoiding cuts to front line services.

Government Formula Grant for 2010-2011 totalled £93,482m - an increase of 2.06% on 2009-10 figures but almost 1% less that the average for English Unitary Authorities and lower than the rise for English councils (2.65 %).

And whilst there is yet no indication on the level of Government funding expected for 2011-12  - the first year of a new Comprehensive Spending Review and following a general election - a 'prudent estimate' of a 10% decrease has been built into the projected grant settlements for both 2011-12 and 2012-13.

Budget recommendations also include a 2.7% increase in council house rents, to meet the recommendations of the Government's national Rent Restructuring policy - a decision consulted on with the Community Housing Panel.

The decisions of the Executive will be considered at Budget Council on Thursday, 25 February.

Full details of proposed rises across the council tax bands in Cheshire West and Chester can be found in the table: