Council tax is set to rise by nearly three per cent in the next financial year.
The proposed hike was revealed by Medway Council moneymen as part of the authority’s draft budget plans for 2010/2011.
It would see the council tax bill for an average band ‘D’ property jump from £1,092 to £1,125 – up £33.
Council bosses said this figure was still £120 lower than those paid by homeowners living in similar homes in neighbouring KCC boundaries and among the lowest unitary authority taxes in the country.
Finance boss Alan Jarrett said the council was facing “some pain” as a result of caps on increasing tax, a lack of government funding and increased demands on cost-cutting.
“We as a council provide a huge range of vital services for our residents and we have to do this on a lot less money than other similar councils,” he said.
“These services include schools, social services, waste collection, housing and maintenance of our roads as well as the regeneration of our area.
“Medway is rated as providing good value for money year after year, and was rated as performing well in its comprehensive area assessment this year.
“But when it comes to organising our budget for the next financial year we are always expected to do this with much less money than other, similar sized councils.
“Medway is a growing area in transition and this should be reflected in the amount of money it has available from its total formula grant.
“This would ensure our area adapts as the whole of the Thames Gateway grows.”
Medway will receive a total formula grant of just over £85 million, equating to £329 per person.
Council bosses argue that the funding system is flawed, with similar-sized authorities receiving more money than Medway.
A spokesman said: “Derby City Council, with has 20,000 fewer residents than Medway, but will get nearly £25 million more in its total formula grant from the government, or more than £459 per person.
“Equally, Brighton & Hove, which has 4,000 less residents than Medway, will receive around £24 million extra, or a total of £429 a head.
“Perversely, as part of the ‘formula’ Medway actually lose some of its grant entitlement to councils such as Brighton & Hove to enable them to continue to receive a minimum level of increase.
“This mechanism, known as ‘floor damping’ takes £4.3m away from Medway annually.”
The council’s total budget requirement for the next financial year stands at just under £379 million.
The budget will be discussed by cabinet members on Tuesday, February 16 and Full Council on Thursday 25.
POSTED: 08/02/2010 15:31:29
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