Cutbacks anger

I AM somewhat irate about council cutbacks that are supposed to save money.

The council took advantage of the Labour government’s suspending of the cap on increases over and above inflation.

In 2004-5 the council increased the rates (council tax) by 9.5 per cent, this being 6.5 per cent above inflation, resulting in some £500 per property in extra income above inflation.

Over seven years the council has saved substantially on cutbacks, so it is safe to say it has been very extravagant with its spending or very wasteful.

Where are your Labour principles?

Mr P Richardson, York Road, Haxby, York.

Comments (1)

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12:30pm Thu 13 Dec 12

Stevie D says...

The majority of the council's funding comes from Whitehall. In 2006, only about a quarter was raised through council tax. The other three-quarters was formed of government grant and a centrally-allocated proportion of business rates collected across the country (the council doesn't get to keep its own business rates).

Since then, the government has cut the amount it gives to councils massively, as well as pushing a load of extra costs onto them. So the council is being expected to do a lot more, with a lot less money. They have to make up the shortfall in what Whitehall is no longer giving out by raising council tax, but that is capped (and even if it wasn't, there's only so far you can raise it before the revolution starts) so they can't make up all of the shortfall, despite above-inflation increases in council tax, meaning that the only option is further service cuts.

(I am not a council spokesperson, just someone who takes an interest in local government and politics)
The majority of the council's funding comes from Whitehall. In 2006, only about a quarter was raised through council tax. The other three-quarters was formed of government grant and a centrally-allocated proportion of business rates collected across the country (the council doesn't get to keep its own business rates). Since then, the government has cut the amount it gives to councils massively, as well as pushing a load of extra costs onto them. So the council is being expected to do a lot more, with a lot less money. They have to make up the shortfall in what Whitehall is no longer giving out by raising council tax, but that is capped (and even if it wasn't, there's only so far you can raise it before the revolution starts) so they [italic]can't[/italic] make up all of the shortfall, despite above-inflation increases in council tax, meaning that the only option is further service cuts. (I am not a council spokesperson, just someone who takes an interest in local government and politics) Stevie D

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