Leader's Statement - Budget and Council Tax 2008/09

Released: 19 February 2008

The Labour Group are recommending an overall Council Tax increase of 4.75%. This includes the precepts for Police (3.5%) and Fire (3.0%). 

For the vast majority of the City’s households, the increase will be less than £43 next year - or the equivalent of 82 pence per week; many households will pay less due to the impact of the Council Tax benefit system and/or the 25% single person discount.

The recommended increase in Council Tax is slightly lower than the indicative figure reported to Council last March (as part of our medium term planning strategy), and as set out during our recent consultation.

Overall, I believe the proposed Council Tax increase to be reasonable having regard for the need to balance the demands for Council services and the impact on local taxpayers.

My Group’s recommendations to Council seek to strike the right balance between having a modest Council Tax rise, the need for new investment in key service priorities, as well as driving further performance improvements and efficiencies.

The Audit Commission has now assessed the Council as the 17th most improved in the country but we will not rest on our laurels. 

In total, £10 million of investment will take place in services in 2008/09, plus a further £8.5 million of capital finance charges arising from the biggest ever capital investment programme. Significant initial up-front investment is necessary to deliver several major  programmes.

Over the next ten years, these will net savings well in excess of £50 million and – perhaps more importantly – deliver better and more customer focused services to the City, its residents and businesses.

Additional resources are also being targeted at the Council’s other key service priorities, such as preventative services for our ageing population; adults with learning disabilities; supporting the local economy; bringing empty properties back into use; introducing plastic recycling collections; neighbourhood safety initiatives and securing a £300 million investment in schools under the Building Schools for the Future programme. 

To hold the overall Council Tax increase to no more than 4.75% overall has required significant efficiency and other savings. 

The budget recommendations for 2008/09 include total net savings of almost £7 million. This is made up of £5.3 million for the full year effects of policy decisions previously taken by the Council to phase-in many of this year’s savings; and £1.6 million of further savings, largely reflecting the initial pay-back from the partnership for Customer Services and Efficiency.

Once again, the recommended budget is aiming to meet in full the costs of nationally determined pay awards for all pay groups, including the full year effects of this year’s settlements.

Price inflation is assumed to average 3%. In total, pay awards and inflation will increase the Council’s costs of delivering services by £7.4 million in 2008/09.

In addition, an extra £0.9 million is being provided to implement Single Status. This is necessary to ensure that the Council meets its obligations for fairness and delivers “Equal Pay for Work of Equal Value”.

The average number of Council employees will fall by around 158 to 12,782. In view of the scale of the efficiency and other savings required, the Council will be obliged to issue, in due course, a Statutory Notice to the Secretary of State for Trade and Industry, with a copy to all local Trade Unions. This notification will then be followed by a period of consultation with a view to seeking ways of minimising job losses.

The Labour Group remain committed to re-training and re-deployment, and will take all necessary action to minimise the extent to which any compulsory measures may be required.

The Council will continue to make major investment through its Capital Programme - over £600 million over the next three years.

In addition to delivering major improvements to services, this investment will also provide a further boost to the City’s local economy and employment prospects.

In broad terms over the next three financial years, £265 million will be spent on Housing; £71 million on Education; £48 million on general Highways and Transportation; £10 million on Social Care; £24 million on Leisure Services and the balance, some £78 million, on Regeneration, Environmental and Other Services. 

Amongst the more significant investments will be a replacement Leisure Centre in Bilston (£12 million), £73 million a year on Decent Homes, rebuilding Green Park/Stowlawn schools (£15 million); £5 million as a contribution towards LIFT; £2 million for the Wednesfield Library replacement; £50 million for the City Retail Core Expansion (Summer Row) and over £10 million for the city centre Interchange project.

A programme on this scale is only possible because of the Council’s continuing success in securing external funding and because of the Council’s policy of generating capital receipts from the sale of land and borrowing to invest.

I recognise that there are still financial challenges to be met in the future. These will be met as part of our transformational change programme, by securing better value for money and by delivering further improvements in performance management.

As I have mentioned, the Audit Commission has assessed Wolverhampton City Council is in the 20 best improving authorities in England. The Council is therefore well placed to meet all of the challenges that lie ahead.

Further detailed factual information concerning the make-up of recommendations will now go forward to the Cabinet on 26 February and then onto the special meeting of the Council on 5 March.

Councillor Roger Lawrence, Leader of the Council

Additional information

Recommended Council Tax 2008/09

The overall increase in next year's Council tax will be 4.75%. This consists of Wolverhampton's share (4.9%) and the Precepts for Police (3.5%) and Fire (3.0%).

Band	2007/08	2008/09	Properties in each Band
	£ p	£ p	%
A	898.80	941.52	53
B	1,048.60	1,098.44	21
C	1,198.40	1,255.36	15
D	1,348.20	1,412.28	6
E	1,647.80	1,726.12	3
F	1,947.40	2,039.96	1
G	2,247.00	2,353.80	1
H	2,696.40	2,824.56	-
			Total: 100%

 

(a) In total, there are just over 100,000 properties in Wolverhampton.

(b) For the vast majority of households, the increase will be no more than 82 pence per week before considering rebates or single person discounts. (i.e. Wolverhampton City Council 76 pence per week; Police 4 pence per week and Fire 2 pence per week).

(c) 31,000 households are in receipt of Council Tax Rebates; of these households, some 16,000 are occupied by pensioners. These households will be shielded from the full impact of the new Council Tax charge.

(d) 33,000 people (or 33% of all the city’s households) will continue to receive the single person’s discount - equivalent to 25% of the Council Tax figures shown above.

(e) Almost £77 million of Council Tax will have to be collected in 2008/09, after allowing for Council Tax Rebates and the Single Person’s Discount.

Issued by the press office.