A 2.5 per cent increase in council tax for 2010/2011 – the lowest since the system of funding local services started in 1993 – is expected to be recommended to West Sussex County Council at its budget meeting next month.
If approved, it will mean an increase for the average Band D taxpayer of £28 a year or 55p a week to pay for the 80 per cent of council services provided by County Hall.
Last year’s tax rise was 3.25 per cent.
A report published today says: “The economic conditions against which the budget has been prepared are the worst for a generation.
“This creates additional demand for local authority services at a time when public finances are under their greatest pressure and the ability of households to absorb council tax increases is under the greatest strain.”
But, it goes on to say that despite a ‘bleak financial background’, the County Council will be investing £29.5 million into priority service areas including £7.2 million to meet the cost pressures of looked after children.
Louise Goldsmith, West Sussex County Council Cabinet Member for Finance and Resources, said: “I know what a tough year it has been for our residents, and as a Council we certainly don’t want to add to it.
“We have worked hard to keep the increase down to 55p a week and hope that Band D taxpayers will find that a reasonable price to pay for the wide range of services provided by the County Council.
“I want to stress that being able to deliver our lowest council tax increase since the system started is mainly due to our own good housekeeping.
“Despite all our representations, we still receive £125 from the Government per head of population towards front line services compared with a national average £201. That difference amounts to £60m less than the average amount per head would give us from Government.
“If we had received the same level of grant increase as the highest for a County Council, then we would be talking about a one per cent increase.
“One of the main reasons for being able to consider a 2.5 per cent increase is the fact that the Council has made huge efficiency savings totalling around £40 million to date, and we are looking to reduce our costs in the next financial year by a further £22 million.”
The next stage of the budget process are meetings of County Council Select Committees followed by the Council’s Cabinet on January 26.
The final decision will be taken by the full Council at its meeting on Friday February 12.
If approved, the new Band D tax will be £1,161.99 compared with the current £1,133.64.
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