Council tax bills in Swindon are, very probably, set to rise by five per cent from April 1 next year.
For the last three years local authorities such as Swindon Borough Council, have been able to increase the tax they levy on households by five per cent – this has been made up of a three per cent increase for general spending and a two per cent increase in spending on adult social care.
But the government has confirmed that the same cap, with the same breakdown in spending, will be applied to next year’s council tax increase.
The Ministry for Housing Communities and Local Government said: “The government has confirmed it will continue the previous government’s policy of a core council tax cap of three per cent and an additional two per cent for local authorities with Adult Social Care responsibilities. Councils will not be able to raise council tax by more than this rate without holding a local referendum.”
Swindon Borough Council’s cabinet member for finance Councillor Kevin Small told his colleagues in September, while giving a budget update: “Assumptions in next year’s budget planning are based on being able to increase council tax by five per cent.”
It seems likely that the Band D bill levied by Euclid Street will rise by £84.66 from £1,693.28 to £1,777.94.
The cheapest bill for Band A properties will go from £1028.86 to £1,080. And the dearest Band H properties will attract a bill rising from £2,897.21 to £3,555.88.
It should be noted that included in the same coverall council tax bills will be precepts for Wiltshire Police, the Wiltshire and Dorset Fire Brigade and the parish councils in Swindon, although they are all much smaller than the borough council’s levy – and will rise by different rates.
But even a five per cent increase may not be enough for the council to be able to balance its budget without some extraordinary measures.
Cllr Small told his cabinet colleagues he believed that next year’s budget would only be balanced by the use of ‘exceptional financial support’ from the central government – for which it has applied.
This allows councils to meet revenue costs using money from capital budgets, but only when allowed by Whitehall.
Currently, officers and cabinet members are desperately trying to find £8.4m in savings to close the spending gap in this year’s budget, which must be closed by the end of March.
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