THE omens are ominous for Surrey council tax payers, according to two watchdog organisations. Both the Local Government Association (LGA) and the Surrey Tax Action Group (STAG) claim that rates will rise above inflation in April. After undertaking a survey of the draft council tax budgets of 132 local authorities, the LGA concluded that overall the 2007/08 council tax rise will be less than the latest retail price index (RPI) of 4.4 per cent. LGA chairman Sandy Bruce-Lockhart said: "It is a tribute to the determination of councils across the country that they are doing everything they can to deliver an ever-better deal for the taxpayer and keep the rises down to a real-terms freeze, while doing the best they can to improve services for local residents. "However, for services apart from schools and other specific grant-funded government priorities, government funding has increased by just 14 per cent in real terms. This is in stark contrast to the 90 per cent provided to the NHS. It is the council tax payer who has funded the 'unprecedented increase in spending', as government grant has not kept pace with the demands on local government, including the ageing population and the costs from new legislation. "In the next three years alone, there will be more than 400,000 more older people - an increase of five per cent - many of whom will require social care. Without additional funding, local government may potentially face a situation, by as early as 2009, where it cannot afford to provide support to the 370,000 people with lower levels of need," he added. Meanwhile, STAG predicts that council tax in Surrey will rise to 4.9 per cent, to stay within the limit of five per cent set by the government. STAG's Peter Webb said: The county council has been cutting upper and middle management from a top-heavy administration and taxpayers should see some cash back from this." "And we want to see evidence of competence and value in improved services intended by the business delivery review and wordy reports such as 'Making Surrey a Better Place 2006-07'. This means tighter control over the roads contractors Carillion and Ringway and actual delivery on 'short-term action plans' like that 'to improve the street scene with particular emphasis on removing detritus and litter'."
