We need grants to avoid huge tax rise

Written by a Harlow Star Reporter and published in Harlow Star's Website on Thu 3rd Nov 2005

TORY and Liberal Democrat chiefs in Epping have joined the clamour for extra Government cash if a massive 10 per cent rise in council tax bills is to be avoided next year.

The Local Government Association announced on Tuesday the funding black hole for local authorities needed to be plugged with an extra £2.2bn to avoid councils having to either impose extortionate tax increases or drastically cut costs.

Despite councils being burdened with more legal responsibilities by the Government - such as paying for free transport for the over-60s and the disabled - the LGA has complained the grants they receive will only rise by 1.5 per cent for 2006/07.

Epping Forest Council agreed a 3.47 per cent increase of its share of the council tax this year and 3.9 per cent in 2004, while residents were hit with a 14 per cent hike in 2003 after a lower than expected Government grant.

Conservative deputy group leader Chris Whitbread supported the LGA's stance, saying: "Let's be honest, since the Labour Government came to power they have been very tight with local authority grants."

Liberal Democrat group leader Michael Heavens warned there would come a point when the council could not maintain its level of prudence and agreed with the LGA's call for more money where it was needed.

"It is essential central Government provide the funds so we can run the services which we have to do by statute," he said.

"In some ways they're taking as much back from us as they're giving us. For years we've economised, economised, economised, but there must be a limit; if you keep squeezing the lemons the pips will start to squeak."

But deputy Labour group leader Stephen Barnes was incredulous of a 10 per cent rise and agreed with those who had accused the LGA of scare-mongering.

Asked what his reaction would be to such an increase, he said: "I would be sitting down and requiring a cooling fan.

"If they had a 10 per cent rise round here, people would be put in prison for refusing to pay. If we foisted a rise of anything like that there would be mayhem."

EFDC leader John Knapman (Ind) said that although local authorities needed more Government cash he anticipated a rise of four per cent in council tax bills next year.

Epping MP Eleanor Laing failed to respond as the Star went to press.