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Friday, 3rd September 2010

Council tax rise of 2.9% would still leave shortfall

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Published Date:
02 February 2010
A THREE-year council tax freeze is expected to be ended this afternoon (Wednesday) when East Hampshire District Council debates its budget for 2010/11.
Officers will recommend that members of the cabinet vote to increase the council tax bill for residents in the district by 2.9 per cent.

This would mean that council tax payers living in a band D property would see their share of the bill rise fro
m £127.67 to £131.37 - a hike of £3.70 a year.

The rise would make the district council's share of the precept cost £6,311,000 in total.

However, this would still leave a shortfall of £61,000 in the council's budget.

The other two options on the table for councillors to consider are increasing the council tax by 3.9 per cent so it fills the council's current budget funding gap of £239,000, or increase the council tax by 1.5 per cent in line with inflation.

This option would leave EHDC with a funding shortfall of £147,000.
EHDC's financial services manager Lynn Ingram said in her report: "For several years the council has maintained stability in its finances, which has seen annual council tax increases limited to no more than inflation and more recently no increases since 2006/07.

"At the same time there has been a continuous improvement in standards across services."

Discussing her recommendation for a 2.9 per cent increase in council tax she wrote: "On balance, taking all factors and risks into account, this option will enable the council to achieve a balanced budget and provide a strong base for financial planning in future years."



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  • Last Updated: 04 February 2010 10:13 AM
  • Source: n/a
  • Location: Petersfield
 
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Christine Melsom,

Hampshire 03/02/2010 11:43:03
Any rise this year is unacceptable. A rise of £4.00per month on my property is too much and together with the other precepts would wipe out most of my state pension increase. Like the private sector, the council must tighten its belt. No rises for councillors and no rises for employees. Perhaps it is time that East Hampshire District council took a leaf out of the Republic of Irelands book and introduce cuts in the inflated salaries and pension contributions.
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