Council tax and charges both set to rise
The cost-of-living crisis in Hastings is set to get worse over the coming months after the Chancellor of the Exchequer, Jeremy Hunt, signalled government approval for council tax rises in his recent Autumn Statement to Parliament.
The Chancellor told MPs that “in the face of unprecedented global headwinds” the government would need to take “some difficult decisions” to rebuild the economy and plug a £55 billion hole in the public finances. He warned of “tough times ahead” and said all government departments “will have to make efficiencies to deal with inflationary pressures in the next two years”.
However, with an annual rate of inflation at over 10%, he admitted that “efficiency savings alone will not be enough to deliver the services we all need.”
CREDIT: Dave Young
Mr Hunt acknowledged that local government services would be particularly vulnerable to cuts in public spending and as a result he announced that councils would be given “more flexibility” to increase the council tax to pay for such things as rubbish collection, street lighting, libraries, parks and recreation facilities.
Local authorities in England have previously been permitted to increase the tax annually by only up to 2.99% if they provide social care, e.g. East Sussex County Council (ESCC), and 1.99% if they do not, e.g. Hastings Borough Council (HBC) and Rother District Council. Any higher increase required approval by voters in a local referendum. But from next year, under a relaxation of the fiscal rules, a council providing social care will be able to increase bills by 5%, others 3%. Treasury officials are expecting 95% of town halls to use these full percentage increases to reduce their cuts.
The average Band D council tax bill in Hastings is currently £1856.95. This total figure is made up of £281.67 levied by HBC; £1613.34 by ESCC; £99.37 by East Sussex Fire Authority; and £224.91 by the Police and Crime Commissioner. A 5% increase in the ESCC bill and a 3% increase in the HBC portion would see average taxes rise by over £80 and £8.45 respectively, giving an overall increase of £88.45. These figures do not take account of any increases for the fire and police services.
The Government is expected to publish details of the provisional Local Government Finance Settlement for 2023-24 before Christmas. Councils across the country will then try to set their budgets for the next financial year and announce any changes to the rate of the council tax in February.
Council fees and charges
In the meantime, as a further whammy, Hastings Borough Council’s cabinet is due to discuss next Monday (5 December) a programme to increase its own fees and charges for 2023-24. Cllr Simon Willis, lead councillor for finance, will propose average increases of 10% across the board for services. Those affected by the increase in energy prices, such as electric vehicle charging points, will rise even more; others, like most planning and licensing charges which are already at the maximum level allowed by government, will not.
Cllr Willis said in advance of the cabinet meeting: “This year’s review of our fees and charges has been a very challenging process. As a council our costs have increased significantly, due to inflation, which means we need to increase fees and charges so we can cover these costs, but we are also aware of the need to balance these increases with the financial situation many of our residents will be in. As a result, proposals being discussed by Cabinet are mainly below the current rate of inflation.”
“Big Strike Week”
Hastings & District Trades Union Council have announced that they will be backing mass strike action during the week of 13-17 December involving the RMT rail workers, CWU postal workers and RCN nurses – the first two unions resuming previous industrial action, the nurses striking for the first time.
A solidarity rally in support of the postal workers was due to take place at St Leonards Delivery Office on Wednesday of this week (30 November). A “mobilizing meeting” is planned for the evening of Monday 12 December, and a further rally will be held at the Conquest Hospital three days later on Thursday 15th.
Donations are being sought to contribute to a Strike Support Fund set up by the Trades Council “to assist strikers and their families experiencing hardship”.
A walk-out by sixth form teachers in Sussex belonging to the National Education Union, including members employed at Bexhill Sixth Form College, was also scheduled to be staged this Wednesday. They are seeking an “inflation-matching increase” in pay following years of real terms pay cuts.
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