Rother tax increase under £6.50 a year

SIX pounds 44p a year - that's the likely increase on the Rother element of Council Tax for mid-range Band D payers in April.

Savings of 105,760 make it possible for Monday's Rother cabinet to recommend the full council to set a budget which comes under the five per cent cap.

The recommendation from director of resources Joy Cooper is to set mid-range Band D Council Tax next year at 143.59 for 2007-2008.

This is an increase of 6.44 - 4.7% - on the current year.

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Since cabinet met in December, the budget proposals have been considered by the overview and scrutiny committee last month.

Changes since December include the 25,000 cost of a choice-based lettings scheme for social housing and 20,000 for the Local Development Framework.

On the credit side, it is now expected that Council Tax collection will be 15,815 more than expected this year.

The budget had been heading for a total spend 12,857,880 which would have meant a Council Tax increase of 9.19 on Band D property - 6.7%.

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The aim had been to cut the budget by 90,000 but savings of 105,760 have been found.

These include 5,960 from parks and open spaces work but without affecting the quality of service;' 30,000 from car parks; 30,000 from treasury management; 4,800 by meeting some corporate resources from reserves; 30,000 by deleting one-off costs on the housing needs and stock condition survey and 5,000 (i.e. the loss of interest on investments) by meeting the choice-based lettings costs from uncommitted reserves.

The director of resources says: "The work of the finance working party during 2005 and 2006 has provided the council with a sound financial strategy for the next five years. This has given transparency over future changes to the revenue and capital budgets...."

She adds: "This is a very prudent budget and members should be mindful of the fact that there is, based on indications by both Government and the Local Government Association, a possibility that the council will be capped if it views the council as excessively spending...."

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