Saturday, July 31, 2010

Why does HDC have to make cuts?

There seems to be some misconceptions about why HDC is in this deep mess. This is a simple guide on the reason for the cuts. All Council Tax figures quoted are for Band D average Council taxpayer for the HDC element of the Council Tax bill.

The first point to consider is the level of spending against Council Tax raised. In the current budget the amount of money raised from Council Tax and also funded by the deficit is £11.9 million or £204.88 each.

We currently receive services that require Council Tax at the level of £204.88 but we only pay £124.17 (£7.2 million). The difference is £80.71 (£4.7 million) which is funded by rapidly diminishing reserves. When the reserves have gone the £80.71 still needs to be funded.

The second point for consideration is the services we currently receive we are not being taxed enough and should pay an extra £80.71.

The ultimate question is: Do we put up Council Tax up by at least £80.71 or cut services or a combination of the two?

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