Dec 2, 2008
Reading’s Taxpayers in for a Shock as Council Budget Settlement Laughably Short of Inflation
Reading’s Council Tax payers could be in for a double whammy of big Council Tax rises and cuts in public services, as a perfect storm in the Council’s budget sets with a settlement from central Government that falls risibly short of meeting inflation, despite the Credit Crunch cutting a vast hole in Reading Council’s coffers. That is the scenario set by Liberal Democrat leader Cllr Gareth Epps.
The increase of only 1.75%, confirmed by central Government on 26 November, has been known of for some time, but the Labour Government has ignored the pleas of councils to cover funds lost due to the credit crunch. As the Lib Dems point out it adds to the black hole in Reading Council’s budget caused by the irresponsible 2008-09 Labour-Conservative budget, which kept Council Tax low in an election year but at a cost the Liberal Democrats now estimate at £2 million this year. With Council income short by over £10 million in other areas, and spending pressures elsewhere rising in areas such as social care, the Liberal Democrats slammed the old parties for the mess they have created.
Commenting to party members, Cllr Gareth Epps said:-
“The budget was irresponsible in February; it looks downright outrageous now. Labour’s one-off tax bribe, backed eagerly by the Tories and paid for by running down the Council reserves to levels even its own financial officers stated were unsustainable beyond the short-term, will contribute £2 million towards the black hole that now has to be filled.
Add to that a financial settlement they knew of then, which falls risibly short of meeting inflation on even the most basic of needs. Now, in the face of some Council income having dried up and a desperate review of capital projects, the Lab/Con ploy has failed. It was a tax con which will cost some people their jobs, cost everyone in higher Council Tax rises and could yet cost vulnerable people the services on which they rely.
Liberal Democrats will in the first place seek to avoid cuts to frontline public services. This is going to be a very difficult Budget. Reading people are fully entitled to know why.”
