Council tax in Rochdale will go up by maximum amount after proposals for one-year freeze rejected in vote

Council tax in the borough of Rochdale will go up in the next financial year by the maximum permitted amount after proposals for a one-year freeze were rejected in a town hall vote.

The rise for the 2021/22 financial year was approved at the authority’s annual budget setting meeting on Thursday night, with the backing of the controlling Labour group.

The general element of council tax will increase by 1.99%, which equates to £21.83 for a Band A property in the borough.

The ring-fenced adult social care element of council tax will increase by 3% which equates to £32.91 for a Band A property in the borough.

The percentage increases to the general element and adult social care element are based on the general element and adult social care amounts combined.

 

 

Along with the increase to the mayoral police and crime precept element of council tax, the increases will see the total council tax bill for a Band A property in 2021/2022 increase by a total of £61.40 to £1,357.73for the year.

The Conservatives put forward plans to freeze the general element of council tax - the largest proportion of the increase -  by using monies that otherwise be transferred to reserves.

This was backed by the Liberal Democrats, but knocked back by Labour who branded the amendment ‘reckless and irresponsible’.

Council leader Allen Brett – who had himself mooted a council tax freeze in the summer – said it was with ‘some sadness and regret’ that he was now proposing an increase.
 

Read more: Rochdale Council is planning to freeze council tax for all residents next yearPublished: 30 July 2020

While acknowledging the government had financially supported the council during the pandemic, he said it still faced ‘significant issues’.

These include a drop in commercial income – particularly the loss of the airport dividend for the foreseeable future – and the amount it collects in council tax and business rates.

Councillor Brett also hit out at the government for factoring in a maximum council tax rise when calculating local authorities’ ‘core spending power’.

“Council tax is not fit for purpose. It is a regressive tax which often falls on the poorest members of communities, which I’m very sad about.” he told the meeting.

“I don’t believe council tax is a sustainable way to support local government. The council will continue to lobby the government to provide us with the funding necessary to support businesses, resident and council services.”

 

 

Councillor Brett had short shrift for the ‘financial irresponsibility’ of the Conservative amendment, which proposed a £1.8m payment from a forecast £2.1m surplus earmarked for reserves.

He said: “Next year there is an extra £1.8m pressure on the budget. Already next year there is a £5m shortfall, so that [the amendment] would put it up to £6.8m. It would mean any of the cuts we were looking at this year and rejected would have to be brought back.”

He added that – due to the effect of compound interest – the council’s coffers would be £21m lighter in 10 years’ time if the freeze were to be implemented.

“This is a budget not just for this year but for future years and to protect services,” said Councillor Brett.

However, the Conservatives argued strongly for their proposal, which group leader Councillor Ashley Dearnley said had ‘local people, not party politics at its heart’.

Councillor Dearnley tried to win over Labour members by citing the budget report’s finding that council balances and reserves were adequate – and that was without taking the forecast surplus into account.

He said: “At this time we should be providing a helping hand to all the borough’s residents, as we all know council tax increases hit the hardest those on low pay – the shop worker, the bus driver, the care assistant.

“All have worked hard – many on the frontline, many on minimum wage – through the pandemic and should now be helped at this difficult time by not increasing the council tax.”

He was backed by his colleague Councillor Michael Holly who also referred to the main budget report, which he said showed the council was ‘exceedingly prudent’.

“We have actually got so many reserves at the moment that we can afford to use reserves in a modest sort of way,” he added.

However, Labour remained unmoved and the Conservative amendment was voted down, despite backing from the Liberal Democrats.

 

 

The Lib Dems also had their own amendment – which proposed introducing free ‘bulky waste’ collections.

This was to be largely funded by reversing the controversial rise to councillors’ allowance voted through in 2016. The Lib Dems also wanted to do away with assistant portfolio holders, branded ‘unaccountable’ by group leader Councillor Andy Kelly.

However, it was the proposals to scrap the union subsidy and cut the communications budget by 10% that sparked fury among Labour members.

Councillor Kelly told the meeting he was not anti-union, and was in fact a union member himself.

But he added: “We should not be funding through the council, tax payer unions that subsequently donate millions back to the Labour Party. It’s wrong.”

The Liberal Democrat leader also took issue with the communications team budget, which he said appeared ‘bomb proof’. “Half a million pounds a year for spin doctors is too much,” he said.

Labour argued there was ‘academic’ evidence that the trade union subsidy – which pays for council staff to take on health and safety reps and other duties- saves the authority money.

Councillor Shaun O’Neill said: “It’s a very, very poor recommendation. You look at the workforce and how they stepped up to the plate during the pandemic, basically you are attacking them. It is absolutely a disgrace.”

His Labour colleague Councillor Liam O’Rourke also took umbrage over Councillor Kelly’s suggestion that the council was ‘in some sort of roundabout strategy with the unions’ – and called on him to withdraw the ‘slanderous’ comment.

However, Councillor Kelly declined an invitation from the chair of the meeting, Mayor Billy Sheerin to do so, reiterating his point that union activities should be paid by members. He claimed that Councillor Brett’s accusation that he does no work as a councillor was the truly slanderous comment.

While the Conservatives had ‘a lot of sympathy’ with the Lib Dem amendment, they abstained on the grounds they did not agree with the proposals regarding the communications budget and members’ allowances.

They also abstained on Labour’s budget proposals – which included a raft of new adult social care charges – while the Liberal Democrats voted against them.

The meeting was held on Wednesday night (3 March).

Nick Statham, Local Democracy Reporter