Families in Middlesbrough are set to be hit by a fresh rise in council tax from April.
Cash-strapped Middlesbrough Council has confirmed it is to impose a near 2% hike - increasing bills by almost the maximum allowed before it has to hold a referendum.
The average bill for Band D residents of the borough will be £1,380.85 - not including the Cleveland Police Authority and Cleveland Fire Authority precepts.
The rise is part of Middlesbrough Council’s budget for 2015/16 and was approved by the executive yesterday.
The decision means the authority will again reject a Government grant which would allow it to freeze bills.
The Government this week announced that more than 100 councils elsewhere in the UK had accepted the grant for the forthcoming year.
Chief finance officer Paul Slocome said: “A number of factors have been considered in respect of the level of council tax increase including our current level of council tax, the current levels of inflation, pressures from caring for our vulnerable people, the level of budget reductions required and the medium to long-term implications of the Government’s autumn statement and the Local Government Finance settlement 2015/16.
“The impact of the Government’s proposed freeze grant has also been considered.”
Middlesbrough Mayor Ray Mallon has continually said he believes the short-term benefit of accepting the freeze grant would be outweighed by the long-term effects on council coffers.
He said previously: “Had the council accepted the freeze grant over the last three years, approximately £1.4m additional savings would be required for 2015/2016.
“In addition, I estimate that taking the grant for the coming financial year would result in the council being required to find an additional £18m of reductions over the next 10 years.”
The basic amount of council tax (Band D) for 2015/16 will rise by 1.85% and set at £1,380.85 being the average (Band D) council tax for the whole of the borough.
In areas with parish precepts, the basic amount of council tax is £1,383.79 for Nunthorpe Parish and £1,391.17 for Stainton and Thornton Parish.
In Stockton, residents are facing a 1.9% rise in council tax. This equates to an extra 32p a week for Band A residents on their £875 annual bill. In the borough 90% of properties are in Bands A-D and the increase in Band D will be 49p a week.
The proposed council tax rise will go before the council’s cabinet this week and, if approved, will then be recommended to the full council.
Redcar and Cleveland Councillor Liberal Democrat Josh Mason - the new deputy leader - has hinted at a possible council tax cut.
Executive members in Middlesbrough were also told at the meeting the additional levels of investment in key services which include:
• £2.18m for care for children and young people;
• £1.5m for care for older people and vulnerable adults;
• £400,000 on capital investment;
• £500,000 on giving staff the living wage.
The budget proposals - announced in October - have been developed to “protect frontline services and the town’s most vulnerable groups as far as possible”.
Mr Mallon set out 51 budget proposals which totalled £14.1m.
A six-week consultation saw the council receive 19 responses and comments in respect of the budget proposals.
Following the consultation period, the mayor said that all his proposals would stand except an amendment he made relating to the camera enforcement initiative on the bus lane on Newport Road.
Using these budget proposals has provided an extra £4.6m investment in the above key services.
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