Wealden agrees council tax increase one year after freeze

On Wednesday (February 23), Wealden District Council approved its budget for the 2022/23 financial year, which included a 2.53 per cent increase in the authority’s share of council tax.

The increase, which equates to an extra £5 per year for a Band D household, comes after Wealden froze its council tax last year in an effort to soften the impact of the coronavirus pandemic. 

Conservative council leader Bob Standley said: “The council’s finances as ever are in a strong position. That state of affairs has been through careful management, which means we are not in the precarious position of some of our neighbouring councillors where prudence left their buildings some years ago. 

“The budget for 2022/23 will deliver the services required by our residents and deliver on the corporate plan. To ensure we can deliver on those priorities the proposed increase is £5 per year for a Band D household — that is under 10p a week. 

“A Band A [bill] will increase by just over 6p a week and a Band H by 19.2p. A Band D household will pay £3.89 per week for the wide range of services the council provides.”

He added: “There are spending pressures. While the inflationary pressures may be short lived, they will have an effect. 

“The proposed increase in council tax will add £336,000 to our income, but the increase in the waste collection contract alone — at five per cent — will absorb the vast majority of that extra funding.”

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Despite these pressures, councillors heard that the council is expected to run a (relatively) small surplus of around £80,000 this year. This would be paid into the council’s general reserves.

No other money would be drawn from the general reserves this year, but the council currently expects to have to use these monies to balance budgets in future years. 

Despite money being drawn from reserves —  expected to total almost £1.3m between 2023/24 and 2026/27 — the council would have general reserves of more than £3m by the end of its current Medium Term Financial Strategy.

The budget also factored in plans to increase both staff pay and members’ allowances by 2.5 per cent. These had also been frozen alongside council tax last year.

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It was staff pay which saw the only amendment proposed to the budget, with Independent Democrat Stephen Shing calling on the council to pay a one-off bonus of £250 to its lowest paid workers.

Cllr Shing said: “As we all know the current inflation rate is higher in this decade. On top of that is the rise in national insurance contributions.

“The current proposal is not a pay rise. The reality is a pay cut compared to the current inflation rate. The amendment’s proposed bonus is far from the real need, but  had that it can make some difference and encourage our lower-paid group of employees.

“We do appreciate and value their work and … we don’t want to see our employees make the difficult decision; ‘eat or heat’.”

According to the amendment, the bonuses would go to 164 staff and cost around £33,500. This could be drawn from reserves, Cllr Shing said.

The proposed amendment saw some support from other councillors (including the council’s Independent group leader David White), but it also saw criticism from several Conservative councillors who argued it would be unfair to other staff.

Roy Galley, whose cabinet portfolio includes HR, said: “I join with Cllr White in commending our staff for their loyalty and great service over the period of the pandemic, but I do want to point out that we are giving a pay rise of 2.5 per cent. That has already been agreed.

“Given that loyalty across all grades of staff I would have thought we would want to seek equal treatment for everybody, not pick out particular groups of staff.

“Cllr Shing said it was not a pay rise. Well it is a pay rise, there is no doubt about that. What he meant I think was it may not be a net increase in income for many people.

“I think we understand those inflationary pressures which are going to be on all of us over the next 12 months, but I think there is a good argument for equal treatment for all and accepting that we are giving a decent pay rise this year in line with national policy and many other organisations.” 

Following further discussion the amendment was voted down. 

While no other amendments were put forward as part of the budget, there were some questions raised about the council’s spending plans for its Hailsham Aspires scheme.

Liberal Democrat group leader Paul Sparks said: “It has clearly been a difficult and turbulent couple of years, but Wealden have managed their finances well, with one notable exception.

“That is Hailsham Aspires, where over £2m has been spent for a scheme on land [the council] does not own or control. 

“I am therefore asking the leader if he will establish a cross-party working group to examine future developments, particularly as it is planned to expend over £7m in the next couple of years on Haisham Aspires, to ensure council tax payers receive value for money.”

While broadly supported by opposition councillors, Cllr Standley declined the call to set up a cross-party working group, saying it would be a decision for the council’s audit and scrutiny committees.

However, he also offered assurances that the money set aside for the project would only be spent once a detailed plan was in place.

Cllr Standley said: “Hailsham Aspires originally was a much grander scheme. We were in discussions with the town council  and they were very enthusiastic about the process. 

“Since then, they seem to have become lukewarm in terms of involvement and therefore we are looking at different options on land we do control. 

“The money in the capital programme will only be spent once we have a full programme and it has been discussed by the sponsor board.”

He added: “If it becomes a new leisure centre or medical centre, which would be good for Hailsham, we would adjust the capital programme accordingly.”

The council also voted to increase council house rents in line with central government policy. This increase will be set at the Consumer Price Index (CPI) plus one per cent, equal to a 4.1 per cent increase this year. 

Further increases at the same rate (CPI plus one per cent) are expected to come in future years as well.

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