Sunday, June 27, 2010

What this Budget could mean for Councils.

The Budget has set out a policy of a Council tax freeze. If a council has an increase in excess of 2.5% they don't get any money. Looking at authorities covering St Neots it doesn't look too bad. Though cuts will have to happen.

CCC - already looking at a 2.5% increase for 2011/12. To achieve this they still need to cut £22 million
HDC - already looking at a 2.5% increase for 2011/12. To achieve this they still need to cut £1 million
Police - already looking at a 2.4% increase for 2011/12. To achieve this they still need to cut £1.9 million
Fire - already looking at a 1.9% increase for 2011/12.

SNTC doesn't figure into this because it does not receive any government money and raises all its tax from the local tax base. We should find out soon if they could achieve a budget freeze.

What could be the real problem behind all this is what will happen over the grants received from central government.

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