Ilkley’s MP Robbie Moore has said today “hardworking people across our area will be brought to breaking point” following Bradford Council submitting a request to government to discuss raising council tax above the 4.99% limit allowed, to between 9.99% and 14.99%.
Bradford Council’s Executive which meets on 22 January, will hear from the Medium-Term Financial Strategy report that the Council is ‘making good progress’ on its path to financial sustainability but that more difficult decisions need to be made in the future.
Bradford has been given exceptional financial support (EFS) by Central Government. This allows Bradford to borrow money to make the changes needed to achieve financial sustainability.
As part of this, the Government has set out criteria that allow councils to request permission to raise Council Tax higher than the 4.99% limit set for most councils. Bradford Councils say it meets these criteria, which include being in EFS, having high levels of disadvantage, low Council Tax now and needing to provide support to vulnerable residents.
Cllr Susan Hinchcliffe, the Leader of the Council, has this week submitted a request to government to discuss the potential options for raising council tax above 4.99%, to between 9.99% and 14.99%. The report recommends that the Executive agrees this submission which would be a one-off request for one year only. More work would need to be done before a final decision is made on this by Full Council.
Were Council Tax to increase by the highest amount of 14.99% now for example, this would reduce the need to borrow by £140 million over the next five years. Even at this higher rate, Bradford’s Council Tax would remain about average compared to other metropolitan councils. The council says “by all of us paying £3 or £4 pounds a week extra now, we can avoid up to an additional £140 million of borrowing that the Bradford council taxpayer will otherwise have to pay for in the future.”
Cllr Susan Hinchcliffe said:
“Like many other councils, after 14 years of reductions in funding from Central Government we have been left in an unsustainable financial position. We welcome the additional funding from the new Government for next year. It shows they’ve listened and this is a significant step in the right direction but it can’t solve the challenges local government faces overnight.
“We are still however facing severe pressures on budgets for all our services, from social care to maintaining our parks and green spaces. We will have to continue to make difficult decisions to ensure a stable financial future.
“We have a clear five-year strategy to address our budget shortfall and achieve financial sustainability. As part of this strategy, we need to find savings or income equivalent to around £40 million next year, and £50 million per year for the following four years.
“We are trying wherever possible to find new ways of working and new funding sources so that we can save money without cutting vital services.
“This decision to request a one-off increase in Council Tax beyond the usual 4.99% has not been taken lightly. We realise that no one wants to see an increase in council tax when other bills are also rising. That’s why, if approved, we’d put in place a fund to support the least well off.
"Looking ahead, we are committed to making the changes and savings needed so we can continue to deliver the services our residents rely on in the future at a reasonable cost.”
Ilkley’s MP Robbie Moore has commented:
“Despite a record breaking bailout from our last government and the promises of “change” from our new government, Bradford Council’s leaders have somehow managed to make the situation here worse.
“Just three years ago, Bradford Council leaders told the public in their own legally binding financial reports that the District was in “strong financial health”. Now, they face a £130 million financial black hole.
“As the Council admit in their financial document today, their failure to protect children in our District and the subsequent removal of children’s services following this scandal has cost the District £150 million.
“Let's remember that Ofsted placed the responsibility for Bradford Council’s failures squarely at the feet of Council leaders themselves - many of those same leaders are shamefully still in place today.
“Hardworking people across our area will be brought to breaking point by these tax increases. We already know that residents across Keighley and Ilkley pay a significant proportion of Bradford Council’s annual tax collection, whilst 75% of the Council’s unpaid Council tax debt comes from Bradford City Centre.
“Yet once again, it will be us picking up the tab for the Council’s financial mismanagement.
"It is time for systemic change across the Bradford District. We need to separate. We need a new local authority for the residents of Keighley, Ilkley and Shipley independent from Bradford which puts local people and local priorities first.”
Bradford Council say its Council Tax is currently £145 below the national average for metropolitan district councils and is the lowest in West Yorkshire. If Council Tax is raised by 4.99%, Bradford would remain the lowest in West Yorkshire and very low for metropolitan authorities. This gap would increase as other councils put their council tax up.
More than 40% of properties in the district are in Band A, the biggest group. If Council Tax is raised by 9.99%, Bradford’s Band A would increase by £113.34 annually, (about £2.17 extra a week); if it were raised by 12.99%, it would increase by £147.38 annually (about £2.83 extra a week); and if it were to be increased by 14.99%, it would increase by £170.07 annually, (about £3.27 extra a week).