HAMPSHIRE County Council's cabinet is proposing to set its lowest-ever council tax rise of 3.5 per cent - the smallest rise since local government reorganisation in 1974. The increase, which will see Band D properties paying £869.40 for the county council's share of the council tax, compared with £840.15 in 2004/05, was due to be discussed by cabinet today (Friday) before being presented by HCC leader Ken Thornber to a meeting of the full council on February 23. Mr Thornber was expected to tell cabinet colleagues that a budget strategy providing the lowest possible council tax, with no cuts in services, has been realised with the rise of 3.5 per cent being in line with December's retail price index. The county council will achieve this by making multi-million pound efficiency savings within departments and by benefiting from central government finding an extra £800,000 for its final grant settlement. Mr Thornber said: "I am delighted to announce that we will be setting our lowest council tax rise for 30 years. Research among residents has consistently shown that people want us to budget prudently and while they do not want to see high council tax rises they do not wish to see cuts in essential services either - this year our budget meets these expectations. "The extra one-off money from government helped us but what has helped enormously is that our departments made huge savings of nearly £15.7 million. "This means that we can continue to provide our 'excellent' rated services without having to resort to sharply raising the council tax to make up the difference. It also means that we are not at risk of having our budget being capped by government." According to Mr Thornber, local government minster Nick Raynsford has cautioned all local authorities that government expects them to budget prudently, and that the average council tax increase in England is to be less than five per cent for the year 2005/06. Mr Raynsford also warns that tougher capping action will be taken for the coming financial year than was seen in 2004/05. Government provides 60 per cent of the budget through grants and the rest has to be paid for by the council tax payer. Mr Thornber's concern is that although the council tax increase this year is the best in decades, all that could soon change. "The extra funding from government is a one- off to keep the council tax in low single figures in election year. This money will not be rolled forward for future years. Government's own spending plans already suggest an increase of seven per cent in council tax on average for 2006/07." But he adds: "Once again the county council has succeeded in rising to this financial challenge from government. "It has not been an easy task and its already looking considerably more difficult for future years. "However council tax payers will be satisfied to see that we remain committed to bringing in the lowest raises for the county council's proportion of the council tax as government funding allows. And this despite receiving one of the lowest government grants for county councils this year." Mr Thornber is acutely aware that for those on low or fixed incomes even a 3.5 per cent increase in council tax may be too much, in which case they may be eligible for council tax benefit. He urges anyone in doubt to contact the county council's information centre as a first step to finding out on 0800 028 0888. "I would urge them all do do so as some of them may be pleasantly surprised," he said. l Members of Hampshire Police Authority's financial affairs panel is proposing a 5.5 per cent increase in its part of the council tax. The figure, agreed on Tuesday, is due to be ratified by the full police authority next Tuesday. Chair of the authority's financial affairs panel Adrian Collett said: "We continue to be as financially efficient as we can in order to make absolutely sure that we are not forced to reduce the number of frontline officers. Given the financial climate for police authorities, our prime concern is to protect the level of policing." l East Hampshire District Council will decide its precept level at a full meeting of the council on Wednesday, February 23.
