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Paul - this will be a response to a much lower level of Govement support in future years. As you know Council Tax only covers a tiny proportion of what Council's spend, around 80% is sent down from Government. With Council Tax also capped the only way councils can meet their budgets is to find economies.
A simple and crude bit of maths for you, If a Council spends £100m and gets £80m of that from the Government and £20m from Council Tax, the Government then cuts its proportion by 5% the following year, Council Tax will have to rise 20% even without allowing for inflation costs. If inflation was 1% (that means effectively no more than 1% pay rises for staff) there is a 25% Council Tax increase needed. If CT is capped at, say 10% (with inflation at 1% thats generous!) what on earth can a council do? Indeed try a 25% increase when inflation is 1% even if it were allowed.....
Better the kind or arrangement DDC are doing than wholesale cuts, perhaps fortnightly collections full stop.
Dont get me wrong, I dont like it and it will cause real problems. But lets at least acknowledge the problems DDC has.
What of course is really needed is a big shake up of LG finance but that would take legislation and the debate on how to change it is one to run and run.....
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