Council warning of potential tax rise (From Gazette & Herald)

Council warning of potential tax rise

11:44am Wednesday 3rd October 2012 in News

COUNCIL tax bills in Ryedale could rise for the first time in three years in 2013/14 as bosses begin laying the ground to deal with the impact of more Government funding cuts.

Ryedale District Council has been drawing up a medium term financial plan – a strategy for balancing its books – while, along with other local authorities, it waits to hear how much its grant from Westminster will be for next year.

A report by corporate director Paul Cresswell has recommended putting forward proposals to the full council for a 2.5 per cent increase in council tax in 2013/14, together with potential increases in fees and charges and possible service cuts. However, no decisions will be taken until February once the grant settlement figure is known.

The council said earlier this year that a seven per cent drop in its grant – equating to £225,000 – would mean having to find about £600,000 in “efficiencies and cuts”.

Mr Cresswell’s report said the grant cut could now be about 10 per cent, which would be a “good outcome” and one of the lowest reductions to district councils, but it was “quite probable” it would be higher.

The full Band D council tax charge for a Ryedale property is £1,500.85, but only £176.72 of this goes to the district council, with the rest going to North Yorkshire County Council and the fire and police services. A one per cent increase in council tax across all properties would net the district council about £38,000.