Dear Sir,
In a last minute leaflet in the recent By Election the Lib Dems claimed that ‘Independents plan huge Council Tax rise – Vote Liberal Democrat today to stop it’.
Yes, it is probable that Independents will vote to increase Council Tax by 2.23% next year. That would be an increase of less than 18p per week at Band D and 8p per week Band A. Inflation is currently at 6.7%.
The Lib Dems proposed a Council Tax freeze, that would create a black hole in the Council’s finances within 5 years of approximately £1,174,800 and effectively bankrupt the Council. They withdrew it!
If Great Aycliffe Town Council were to freeze Council Tax in 2024/2025 and each subsequent year of the Medium Term Financial Plan this would result in an estimated loss of revenue from the precept of £122,900 in 2024/25; £261,900 in 2025/26; £353,250 in 2026/27 and £436,750 in 2027/28 a total projected compounded loss of revenue income of £1,174,800 – this is based on maintaining current service delivery up to 2027/2028.
However, far from us being able to increase Council Tax by only 2.23%, the Lib Dems are now forcing the Town Council to increase it by 5.5% for next year.
They are doing this by voting at Durham County Council (DCC) to reduce the Local Council Taxation Revenue Support Grant (LCTRS). If this gets carried at DCC then £56,235 per year for two years will be lost to Great Aycliffe Town Council, £112,470 in total, but, compounded by the fact that it is revenue income thus with a freeze, creating the black hole of £1,174,800 by 2027/2028 and hence bankrupting Great Aycliffe Town Council.
The alternative is to cut facilities and services to the tune of £1,174,800 by 2027/2028.
The Lib Dems have so far refused to identify which it will cut and slash.
2024/2025 Council Tax proposed increase 2.23% but, with Lib Dems DCC LCTRS cut, it would become a 5.5% increase. The Lib Dems are supporting DCC increasing its Council Tax by 4.99%.
You cannot promise to stop Council Tax from increasing but, at the same time, vote at County to cut the LCTRS Grant knowing full well it will increase GATC Council Tax.
Cllr Arun M Chandran
Chairman Policy & Resources Committee
Great Aycliffe Town Council