Ealing Council Tax To Increase By 5.99%
Jobs and services to be cut by council suffering 'significant financial pressures'
Residents in Ealing will have to pay more council tax from April.
The Council has increased the rate by 5.99% the maximum amount that the Government has allowed without the need for a referendum.
Opposition Conservatives have criticised the move claiming Labour have allowed departmental overspends.
The Council agreed a new budget this Tuesday night (20 February) which will see a rise of 2.99% plus 3% social tax levy which is a separate charge made to contribute to the cost of adult social care services.
It comes amidst serious financial concerns for the council which has total annual social care costs of £144million and must find more than £56million in savings by 2021 in order to balance its books.
£17million reductions have already been agreed with proposals including reducing the number of managers and staff at the council and consulting on stopping a public health advice service for people quitting smoking - but that still leaves a large deficit and more cuts will be needed.
Council leader, Councillor Julian Bell, said: “We promised to keep council tax as low as possible for as long as possible and we have done this. Core council tax has been the same for a decade, but this year we have no choice but to increase this part of the bill by 2.99%, which is in line with inflation. Sadly, the unrelenting cuts from central government and increasing demand on our services means that we, like an estimated 95% of councils in the country, have no option.
“The total amount raised by increasing council tax in line with inflation and passing on the government’s social care precept is £7.2million. Sadly this extra money comes nowhere close to bridging our funding gap. It won’t cover the cost of rising demand for child protection services let alone meeting the much bigger cost of rising demand in adult social care.
“I am proud that we are continuing to meet our duty towards our most vulnerable residents and I am not prepared to stand back and watch over decline. This is why we are pushing forward with an ambitious transformation programme called Future Ealing. Its aim is to improve outcomes for local people at a time of drastically reduced budgets by rethinking how we operate and focusing on the areas that matter the most to residents. It is also about growing our income in as many ways as we can to try and offset the rise in demand for our services and the unrelenting austerity cuts that have been imposed on us since 2010.”
The council is optimistic that it will be able to capitalise on additional investment and business that Crossrail will attract to the borough. Ealing, along with other London boroughs, has negotiated with the government to keep its share in the growth in business rates instead of it being diverted into a central government pot.
Councillor Yvonne Johnson, cabinet member for finance, performance and customer services, said, “We froze council tax for as long as we possibly could, because we wanted to help our residents who are also struggling under austerity. However, the financial pressures that we now face are so great that we have no choice but to take this increase.”
Cllr Greg Stafford, Conservative Opposition Leader said, "Residents will be shocked to know that Labour knew from as early as 2010 that this moment of financial reckoning was coming.
''But, they sat back and allowed massive departmental overspends (without any consequences) while failing to make proper efficiency savings; wasted millions on vanity projects and increased their own allowances. Classic behaviour from Labour: spend until there is none left and then blame others.
''Yet, in our neighbouring Borough of Hillingdon, run by the Conservatives, residents for 11 years in row will enjoy a zero percent increase in their council tax, with charges and fees remaining frozen since 2011, continue with a weekly rubbish collection service and see massive investments in schools, libraries and roads despite facing the same scale of challenge as Ealing.
''The difference between the two, is that Ealing is run by a Labour administration without any regard to prudence and priorities."
Of the money raised through residents’ council tax bills, 20% goes to the Greater London Authority to pay for the Metropolitan Police, the London Fire Brigade, Transport for London and other services, and projects managed by the GLA. The Mayor of London’s share of council tax bills, known as the precept, is due to rise to £294.23 for Band D taxpayers, an increase of 27 pence per week.
21st February 2018