'Prudent financial management' means residents face no increase
Despite earlier bleak forecasts there will be no council tax rise in Ealing for the eight consecutive year.
The government gave the go-ahead to local authorities to raise the tax by up to 3.99% but on Tuesday, 16 February cabinet members will consider proposals to reject this increase.
Ealing Council says it can do this and still balance its budget thanks to its 'prudent financial management'.
The government has assumed that councils will increase council tax to fund social care and other services, but instead the council will consider allocating £2.3million extra for social care next year, rising to £4million by 2019/20.
Cabinet members will also consider creating a special £5million social care transformation fund which will be used to redesign services so that fewer people need intensive help in future years.
When faced with cuts from central government in 2010, the council says it took immediate action to make savings. By attracting more businesses the amount of business rates coming in to council coffers has increased by £2.6million and building more new homes in the borough meant the amount raised through council tax has gone up by £2.3million in 2015/16. Ealing says it is also one of the best in London at collecting any tax is owed, which has also helped to balance the budget.
The council still expects to face major budget cuts for at least the next four years and says residents will notice the impact on services. However, future cuts in the authority's government funding are likely to be introduced more slowly than previously feared. The council is now making plans for a further £12milllion of efficiencies by April 2020, in addition to the budget reductions already agreed.
Council Leader, Councillor Julian Bell, said: “Next week we’ll consider proposals to again freeze council tax. Despite the pressures on our budgets I think it is right to protect our residents from further financial burden and freeze council tax. We know that the hundreds of pounds we have already saved local people will have really helped them during these years of austerity. If we accepted the government’s plan to raise council tax by up to 4%, it would mean an additional £42 be added to the council’s portion of the average bill.
“Although the last few years have been tough, we have also worked tirelessly to drive regeneration and attract new investment which has brought in new money and strengthened our local economy. We will continue to show Ealing is open for business and capitalise on projects like Crossrail for the benefit of our residents.''
Councillor Yvonne Johnson, cabinet member for finance, performance and customer services, said: “As soon as it became clear that we would be facing major long-term cuts to our funding we took swift action to cut our costs, work more efficiently and reduce spending wherever possible to balance the books. Our prudent approach to planning our finances and taking decisive action means that we are in a position to freeze council tax for the eighth year running. We know people will be rightly concerned about social care provision, and while we cannot avoid the consequences of the overall reductions in council funding, we will lessen the impact by finding an extra £2.3million for social care in this budget. ”
Conservative finance spokesperson, Councillor Anthony Yound has welcomed the freeze:
''The Local Government Finance Settlement gives councils greater financial freedom and we are pleased that the Labour Administration supports the Government’s goal to help hardworking families by freezing Council Tax.
''This continued freeze, which the Government have previously funded, will mean that Council Tax is expected to lower in real terms in 2019/20 than in 2009/10.''
Council tax payers will also see the GLA levy for the London Olympics removed from their bills this year – reducing Londoners’ bills by £19.
If the proposals are agreed by the cabinet, the recommendations will go forward for discussion at a meeting of the full council on Tuesday 23 February when the budget will be set for 2016/17.
10th February 2016