Council Tax Rise Set at 4%

Lancaster City Council has set its increase in Council Tax for 2009/10 at 4% -- but there are warnings of more service cuts ahead to achieve it.

In real terms, the rise, which is in line with government guidelines means residents will pay an average of an extra £7.13 – or 14p a week – to the city council from April 2009.

The increase sets the council’s budget for 2009/10 at £23.999 million -- but further work will now take place to find the savings necessary to achieve a balanced budget.

The final revenue budget will be set by Council on March 4.

“Keeping next year’s Council Tax increase to no more than 4% has long been an ambition of the council and I’m pleased that it could be agreed," commented new Council leader Abbott Bryning. “To achieve it there is still much work to do on the budget and it is clear that the council will have to make savings in areas it would otherwise wish to maintain or expand.

“But I am confident that by working together we will be able to find the savings and efficiencies which are necessary to achieve a balanced budget while maintaining a range of value for money services.”

Savings are necessary due to higher than expected costs for the council in areas such as concessionary travel (as there has been significantly more take up than provided for in the Government grant), and an increase in rent at Lancaster Market.

The recession is also having an impact, with increased expenditure in maintaining regeneration sites, reducing income and significantly reduced investment interest.

As a result, the council has had to make a number of tough choices and decide to reduce services it might otherwise wish to maintain.