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Council Tax rise will help protect vulnerable residents

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A 1.99 per cent rise in Council Tax for 2016-17 – accompanied by two per cent increase to support social care – has been approved by St Helens Council today (2 March).

Councils with social care responsibilities – including St Helens – have been asked by the Government to raise Council Tax more than the two per cent threshold that normally requires a local referendum. The maximum is just below four per cent – with the condition that the extra funds are used for care provision.

Accordingly a 1.99 per cent basic increase will be accompanied by a two per cent rise that will go some of the way towards covering care provision in St Helens.

The basic increase also takes account of further cuts in Government grants. For 2016-17 this equates to £9 million – and takes the total lost since 2010-11 to £74 million.

“It gives me no pleasure to present this budget,” said Council Leader Barrie Grunewald, “but we will have lost 60 per cent of the grant that we used to be able to count on from central government and, at the same time, we face additional spending pressures.

“The Government claims that it is providing greater clarity with this grant settlement – but as far as we’re concerned all it does is confirm our worst fears. Once again we’re seeing deprived areas like St Helens come off far worse.

“If that wasn’t enough, we’re also facing other, significant financial pressures. The removal of opted-out status for pensions means that our National Insurance costs will rise by 3.4 per cent.”

The council has been doing all it can to reduce its costs and generate more revenue. Last year it beat its target by getting 632 new homes built in the borough – generating more Council Tax income. There has also been more tax revenue from a higher level of commercial activity in St Helens.

Major efficiency savings have also been made. The council has changed the way it delivers and purchases services – and maximised value for money at every opportunity. The council workforce is also significantly smaller than it used to be.

Councillor Grunewald added: “This situation is unlikely to change. So we’ve already started work on a major policy review of our spending priorities that will help us to deal with the challenges we’ll face beyond 2017.

“However these challenges are significant. As well as cost pressures in the care sector they include general inflation, increases in the number of adults and children needing support and rising levels of need, increases in demand for everyday services as the population grows and pressure on homelessness budgets.”

Budget at a glance
· St Helens Council faces an £8.9 million (16 per cent) reduction in Government grant.
· It means a 1.99 per cent increase in Council Tax and an additional two per cent rise to invest in the social care that the Government expects the council to provide.
· The council faces additional costs due to the introduction of the National Living Wage and higher National Insurance costs.
· There will be a 0.8 per cent increase in business rates.
· There is a freeze on general funding for schools.

Highlights

Despite being under pressure, the council has still managed to:

· Invest in new, energy-efficient street lighting
· Attract investment in sports development at Ruskin Drive
· Boost highway improvements by attracting regional investment
· Maintain investment in our school estate
· Support large scale commercial developments

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