Labour bids for 2.2% tax rise

Adam Hewitt • Published 16 Feb 2010 09:00 0 Comments

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COUNCIL tax in Reading will go up by 2.2% from April if the ruling Labour group can get its budget passed.

It says the below-inflation tax hike is the lowest possible to protect vital services. The increase would mean a £1,289 bill for the middle category, Band D homes, although the majority of homes in Reading are actually in a lower band. Across all homes, the average increase will be 29p a week on last year. This will be pushed higher by levies to fund police and fire services which have not yet been set.

Council leader Jo Lovelock said this week: "This 2.2% increase is below the current level of inflation. We have worked hard to keep the increase as low as possible, while protecting services."

Labour runs a minority administration because it has only 19 of Reading's 46 councillors, meaning that when the budget is discussed at next Tuesday's full council meeting, the opposition Lib Dems and Tories could reject it and implement their own. The Conservatives have 18 councillors and the Lib Dems have eight, while Cllr Tony Jones sits as an independent.

Last year's budget and council tax setting was a tortuous, week-long process in which the Lib Dems extracted concessions from Labour in exchange for their support and both ultimately agreed a 3.99% tax increase. The Tories refused to participate in the negotiations, promising a council tax freeze but without saying what they would cut to pay for it.

Cllr Lovelock said: "As the minority administration the Labour group will need the support or abstention of at least one of the other political groups to ensure that a legal budget is made. We very much hope that all parties will want avoid a repeat of the budget making process in 2009, which took three separate meetings to reach an agreement."

The budget increases social services spending by nearly £6m to cope with booming demand from the elderly, disabled, vulnerable children and those with special needs, but also includes £7m of cuts across all departments through 'efficiency savings'.

Cllr Lovelock said: "These do not impact on the public, but do reduce staffing levels. Where possible this will be achieved by not filling vacancies and voluntary redundancies."

She said some of these cuts are part of the council's value for money programme which, as reported in the Midweek last month, means an estimated 165 job losses starting next year until 2014, and others from savings announced last autumn.

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