Council Tax increase being proposed by Oldham Council

Oldham Council is set to consider proposals to increase Council Tax by 3.5 per cent from April 1 this year.

The Local Authority must deliver a balanced budget for 2013/4 and – in total – needs to find an estimated £38 million in savings by 2015.

Major reductions in funding from Central Government and the impact of other pressures mean savings totalling £100 million have already been made in the past four years.

The new draft budget proposals go before the Overview and Scrutiny Committee (Performance and Value for Money) on Monday, January 28 at 6.30pm.

If approved they would see a first rise in Council Tax in three years.

This would mean an estimated rise of 60p per week for residents in Band A properties (43 per cent of Borough households) and up to 90p a week for Band D homes. Councillor Abdul Jabbar, Cabinet Member for Finance, Human Resources and Strategic Partnerships, said: “We don’t propose to put up Council Tax lightly but we must balance the books and also protect key frontline services for residents.”

”There’s been no Council Tax rise for three years in Oldham but inflation means we are facing increasing costs at the same time as we’re getting reduced income – because of the state of the economy – and also trying to manage significant funding cuts from Government.

“We’re also facing ever-increasing demands from the weakest and most vulnerable members of our communities who need our services most when times are tough.

“Despite all that these proposals are designed to protect frontline services. We are not alone in proposing to put Council Tax up but, unlike many other Local Authorities, you will note we have no ‘quick-fix’ plans to close local libraries, community centres or children’s centres, for example.

“We’ve delivered huge efficiency savings in recent years and our financial management is now rated ‘top of the league’ by the Audit Commission.

“That prudence will continue and we remain focussed on working to maximise our income sources, reduce debt and invest to stimulate economic growth and regeneration.”

Jim McMahon, Oldham Council Leader, added: “We have found savings of £30 million already this year, however the additional £7.5 million of cuts from Government means we either start closing libraries and children’s centres – as seen in neighbouring areas – or we look for balance and increase Council Tax.”

“This is not ideal but it’s a better option than closing facilities that people in Oldham rely on.”

Following next Monday’s Overview and Scrutiny Committee meeting, the budget proposals will next go before Cabinet on Monday, February 18.

They then go before a special Full Council budget meeting taking place on Wednesday, February 27 in the Council Chamber at 6pm.

That meeting will also be broadcast live on the Oldham Council website at www.oldham.gov.uk and by Oldham Community Radio.

Jude Gidney - Editor
Author: Jude Gidney - Editor

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2 Comments

  • Sean says:

    “inflation means we are facing increasing costs at the same time as we’re getting reduced income – because of the state of the economy”

    Just like the rest of us then?

  • Silver Surfer says:

    Hang on a moment Jim you have £11million put on one side for a statue of Churchill and other public art, this money could be put to better use instead of being wasted on public art. You do not need to raise the council tax but you will, after all you have all those new loans to pay back 3.5% this year 6% next

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