Council tax increase of 3.5% ratified

Councillor Colin Lambert

Following a lengthy debate in the council chamber, Labour controlled Rochdale Council voted to ratify the proposed 3.5% increase in council tax.

The increase means that residents living in a band D property will pay £1,330.36 council tax (excluding precepts*) in 2013/14.

The Conservatives proposed an alternative budget that would have meant no council tax rise, this proposal was rejected by Labour.

The Liberal Democrats proposed an alternative budget that would have meant a council tax rise of just over 3%, this proposal was also rejected by Labour.

Conservative proposals included the withdrawal of council funding provided to trades unions for their representatives, which would save £126,000 a year. The Lib Dems also included this in their budget proposals. Both opposition parties stressed that they did not want to see trades union representatives removed, they want the trades unions to finance their own representatives rather than Rochdale council tax payers doing so.

Labour rejected the proposal with Councillor Richard Farnell saying without the support of trade union reps the council would not have been able to deliver necessary savings. He added that at a time of cuts and redundancies the role of the trades unions had been a crucial one and it was important that council staff had support and representation.

Both the Conservatives and Lib Dems proposed continuing with council staff taking three days unpaid leave, a measure that had been imposed this year by Labour as a 'one-off'. Labour rejected this proposal.

The Lib Dems proposed creating a 'town centre traders fund' to help hard pressed retailers in town but Labour said that the Lib Dems were also calling for an increase in car parking fees, something Cllr O'Rourke said would "kill off" business in town centres. Lib Dem leader Cllr Kelly said this was incorrect, the Lib Dem proposal was to reduce short term parking charges on Rochdale town centre and raise long term charges to compensate.

Cllr Allen Brett called the Conservative proposals "nasty" but admitted if he was in opposition he would have tabled similar proposals. Cllr Brett added that the Conservative proposals would mean larger increases in future years. Cllr Lambert agreed and said there would be a £5.4M gap over the next three years.

Cllr Farnell said that every household in the borough has suffered £656 of cuts to council services, a result he said of the government cutting Rochdale's funding. He dismissed the Lib Dem proposal to set a council tax of 3% instead of the Labour proposed 3.5% as "pathetic" and "squalid" as it would save council tax payers just 8p per week.

Cllr Mulgrew cited an underspend of £6M this year and suggested that could be used to ensure council tax did not have to rise. Labour rejected this on the grounds that it would be a one off measure.

All three parties were agreed that recycling rates need to be improved; Cllr Kelly pointed out that one in every 20 items of rubbish recycled amounts to £2 off council tax. Cllr Lambert said Labour would attempt to boost recycling rates by delivering more blue and brown bins across the borough.

Cllr Dearnley accused Labour of "playing politics" and said the increase could give rise to government sanctions next year. He said it was Labour's proclivity for overspending that necessitated a council tax rise.

The debate closed with council leader, Cllr Lambert saying the rise was necessary to protect vital services.

With that, the vote went as expected with Labour using their majority to ensure their proposed budget was carried and with it ratified the 3.5% council tax increase.

*Council tax bills contains a number of different items. Alongside the element to fund council services, there are 'precepts'. These are the amounts added by authorities providing specific services to the area - for the police authority and fire authority.

The element relating to council services can be split further, which is not represented on your tax bill. This is because the council also pays levies or special levies to bodies such as GM Waste Disposal and GM Passenger Transport.