Council tax hike warning

Published on 14th September 2006 in News

Liberal Democrats at the East Riding of Yorkshire Council have warned that tax-payers are likely to face above-inflation Council tax increases in April next year after new figures have shown that the council's overspending has hit £2.4 million.

The figures went to the East Riding Cabinet on September 6, and are said to have been described by officials as 'potentially' detrimental to the finance of the council.

The main overspend is in Social Services homecare for the elderly and vulnerable; there is an additional overspend of £1.3 million in the school budget.

Cllr's failure?

David Nolan, Opposition Liberal Democrat Group leader, said: "This is a failure of the Conservatives who run the council to get to grips with the finances.

"A £3.7 million overspend is equivalent to a three per cent council-tax hike next April, even before any allowance is made for inflation. East Riding Council taxpayers will be forced to put their hands in their pockets to pay for the failure of the Conservative councillors to properly budget and manage the finances."

However, Steve Button, head of finance at the East Riding of Yorkshire Council, disagreed:

"The figures that are going to the cabinet reflect a position which is very early in the financial cycle, when there are often variations from the original profile," he said.

"The current projected overspend merely represents what would happen if current trends continued and no action was taken.

"This council has detailed management plans in place and, as was shown last year, has a strong track record of coming in within the budget - something which, without exception, this council has achieved since its inception in 1996."

A spokesperson for the East Riding of Yorkshire Council confirmed that Mr Button's comments were supported by both council leader Stephen Parnaby and Terry Allison, leader of the Labour group.