IT would be “irresponsible” to rule out a further increase on a proposed 7.8 per cent council tax hike, the councillor responsible had said although Labour member Ben Callard added he doesn’t expect to do so as he looks to close a £2.86m gap in Monmouthshire County Council’s draft budget.
A consultation on the proposed council tax rise and spending, and savings, plan will close on Saturday with the draft budget nearly £3m short of being in balance with the council hopeful of additional funding from the Welsh Government.
The Labour-led council said to continue to provide all the services it currently does in the new financial year would require an extra £23.7m but its core funding from the Welsh Government is only increasing by £5.1m - the lowest percentage increase in Wales.
The proposed 7.8 per cent council tax rise will also bring in an extra £5.9m while the council is also planning £5.1m in savings but the draft budget has acknowledged a further £2.86m has to be found to produce the legally required balanced budget, due to be presented to the full council for approval on March 6.
.jpeg?width=209&height=140&crop=209:145,smart&quality=75)
When Councillor Callard took questions from the council’s performance and overview committee he was asked by its chair, Cllr Alistair Neill if there was “any intention to close the gap with an additional increase to the proposed council tax?”
Cllr Callard replied: “It’s my hope that we won’t have to go any further on council tax to close the gap. I would say that, at this point, it would be irresponsible of me to completely rule it out but I’m not expecting us to have to go any further on council tax for our final budget.”
The proposed 7.8 per cent increase would see a band D charge, before community council and police precepts are added, increase by £131.56 a year to £1,818.26 - an extra £10.96 a month.
The monthly increases, over 12 months, are £13.40 and £15.84 for homes in bands E and F while those in bands G and H will have to find an extra £18.27 and £21.93 a month, respectively, with the highest value homes in band I paying an additional £25.58 a month.
Cllr Callard said the authority is in negotiations with the Welsh Government over a “funding floor”, which council block grants wouldn’t fall below. He said it would have the biggest impact on Monmouthshire as the council that received the lowest percentage increase.
The council is also hopeful of receiving additional grant funding from the Welsh Government and Cllr Callard said he doesn’t expect to make further cuts beyond the £5m savings identified in the budget, which includes a reduction in opening hours of its hubs in Abergavenny, Caldicot, Chepstow and Monmouth.
Cllr Callard said: “At this point in time I’m confident we won’t have to go back to services to make further savings in our services.”