By Rachel Charman
It has been reported today that Council Tax increases across the country will be the smallest since the tax began.
Ian Curruthers, technical director of the Chartered Institute of Public Finance and Accountancy, told the BBC today that the average tax increases are “inprecedently” low.
In England, the average rise will be 1.6% to £1,194 per household for the financial year 2010/11 according to the Local Government Association (LGA).
Whilst this equates to an average of an extra 36 pence a week compared to last year’s figures, due to the current rate of 3.7% inflation, this represents an actual cut in Council Tax by 2.1% in real terms compared to 2009/10.
Sir Jeremy Beecham, vice chairman of the LGA, told The Sun today: “Local authorities understand that money is tight for everyone and deserve credit for keeping council tax rises lower than ever before.
“Many councils have indicated that they will freeze or even cut council tax meaning more money in the pockets of residents.
“Others are having to deal with a unique set of circumstances and face acute pressures on their finances.”
In Southend, a Council Tax increase of 2.95% has been proposed. This is a reduction on the original proposed increase of 3.95%.
Several opposition councillors have criticised this move by the Cabinet, claiming that it will either affect frontline services or is simply a political stunt.
The proposed amendments to the 2010/11 budget, including Council Tax increase cuts, will be discussed in a Council meeting on Thursday at 6.30pm at the Civic Centre.
