Cornwall Council has published proposals for a 1.97% increase in Council tax for 2013/14. This percentage is conveniently below the 2% level which would trigger a referendum.
Council tax is set by a meeting of all the councillors and whilst Cornwall Council's Cabinet have a duty to prove guidance on the level of Council tax they do not make the final decision.
There has been some complaints that Central Government have somehow been unfair in their funding of local authorities, as the Coalition Government continues to address the financial mess it inherited from the last Labour Government. These complaints carry little weight as increasingly it is accepted across the political spectrum that the Government has to balance the books. It is impossible to continue to have expenditure exceed income with borrowing, repayable by future generations, filling the gap in the UK's finances.
Austerity is a necessary evil with the duty of Government to make certain that funding allocation is as fair as possible. It is only right and proper that local authorities play their part in that process.
The argument will likely be trotted out at some stage that the proposed increase in Council tax is a matter of "a few pence a week per household". This is clearly true however misses the bigger picture.
A quick look at the economic landscape shows there to be a number of these "few pence a week" demands on purses and wallets. These include domestic fuel ( http://www.ofgem.gov.uk/Markets/RetMkts/rmr/smr/Pages/indicators.aspx ) and motor vehicle fuel ( http://www.smartplanet.com/blog/take/oil-and-gas-price-forecast-for-2013/305 ). Then there is food price inflation ( http://www.effp.com/knowledge-bank/price-forecast-analysis/effp_latest_forecast.aspx ) and the capping of welfare benefits as part of the austerity programme ( http://www.telegraph.co.uk/comment/telegraph-view/9788019/Capping-welfare-benefits-is-the-moral-thing-to-do.html ). It is worth pointing out that some of these factors are beyond any Governments control such as the price of crude oil however the Chancellor has shown himself willing to moderate the price of fuel at the pumps by scrapping the planned fuel duty escalation rise last Autumn ( http://www.guardian.co.uk/politics/2012/dec/05/george-osborne-fuel-duty-autumn-statement ). Offsetting these inflationary effects will be the rise in personal tax allowances taking effect in April 2013 which will reduce tax bills by up to £267 per year for standard rate tax payers.
There are many other inflationary pressures which in aggregate are far more than "a few pence a week". It seems to me that Cornwall Council needs to remain a part of the austerity solution by continuing to exercise discipline to keep Council tax rates unchanged. If it were to approve an increase, in part to fund the 20% increase in councillors' allowances, then I would regard the Council as failing to respond to the financial pressures facing individuals and families, many of whom are seeing no increase in their pre-tax incomes.
On the subject of councillors' allowances I voted not to increase them and am hopeful that before too long the Council has a further opportunity to discuss this issue and consider whether to reverse its previous decision.
