Thursday, February 16, 2006
Council tax Rise
Council Tax rises by 3.7% (Councillors to keep some for themselves.)
South Tyneside Council's Cabinet is to recommend a rise in Council Tax of 3.7% for next year, the full Council is expected to "rubber stamp" the proposal on Friday 24th. February. It seems that all are happy and delighted at such a small increase, it was at the lower end of the scale of proposals produced for public consultation, not the lowest, but less than some of us expected. Following the disastrous mismanagement of the public finances last year involving an 11 million pound overspend (4.25 million nett) one could have hoped for a more stringent and tighter approach to spending budgets for next year, and in the medium term. I have argued that this Council could have reduced it's spending plans for future years and held Council Tax at the same rates as last year. This would have given the right message to the public about politicians' intentions to control the budget and would not have necessarily hurt services in the drastic fashion that some feared.
Hidden in the news is the fact that Councillors' Allowances will increase by 2.2%, a nice little reward for failing to control last year's spending! Granted this is just above the current rate of inflation, and is on a par with some of the wage increases being accepted in industry, however, many employees in the Borough will enjoy no wage increase at all this year. There are a great many whose employers have productivity deals, and if last year's targets have not been achieved then there will be no rewards for the employees. My colleagues in the Corner Shop for example will receive no profit bonuses at all this year, despite their superb efforts in producing a very respectable profit in the business unit. The whole company, however, failed to achieve it's target, therefore - no bonuses.
For our Councillors, there are no such scruples - after frittering away millions of pounds last year - the snouts are stuck firmly in the trough!
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