New Forest District Council to have 12p a week council tax rise

At the full council meeting which approved the 2005/6 budget, the council tax was set at a level where a Band D household would pay £137.21 a year - an extra £6 a year, or 12p a week.

Council leader Mel Kendal pointed out that although NFDC received a slightly larger government grant than that of last year, this will be insufficient to cover increased costs in several areas, including new licencing duties, recycling, anti-social behaviour orders, increase in pension costs and insurance.

“Government grants given to district councils will not be enough to cope with these extra pressures and will make single digit increases in council tax very difficult for any district council,” he said. Cllr Kendal said that the 4.79 per cent council tax increase is among the lowest in the country – the average English district council tax increase being 5.6 per cent.

“In fact it is in the bottom 20 per cent of increases, despite our government grant being amongst the very lowest. Indeed if we received the same amount per head of population that some other – notably Labour – councils receive, we would not need to charge any council tax,” he said.

The council tax had been set at this level to budget for a total expenditure of £19.44 million, said Cllr Kendal.

Efficiency savings of £1.2million had been made with budget reductions in all departments and some staff reductions, he said, but there has been no cut in front line services.