Liberal Democrats Back Single Figure Council Tax Increase

9.10.18am GMT Fri 27th Feb 2004

Liberal Democrat Councillors on Brighton and Hove are backing moves for a 7.7% Council Tax rise.

If agreed by Council on Thursday night, the Lib Dems will have helped to bring down the proposed Council Tax increase from a potential pre-Christmas figure of 18% to 7.7% - more than halving the increase.

The Councillors are optimistic that such a figure will avoid capping by the Government.

Lib Dem Group Leader, Councillor Paul Elgood:

"This is the best Budget for the City in three years. We are optimistic that this single figure tax increase will avoid capping, which looked likely just a few weeks ago."

"There are times when politicians of opposing parties need to put political differences aside and working jointly in the interests of residents. This year's budget round is one of those."

"The council faces its most difficult budget setting process since its inception. Another poor central Government grant settlement and increasing pressure on the services the Council provides means that only a few months ago the council could have been looking at a council tax rise of 18%. This was brought down by the Labour Administration to 11.9%, but what has become increasingly clear is that this must be reduced dramatically further to 7.7% to avoid capping."

"The Government has been clear that large rises will not be acceptable and will be capped by the Government, which would mean financial meltdown for the Council."

"In these circumstances and acknowledging growing public unrest with large tax rises, we indicated that we would work with Labour Councillors in the best interests of the City."

"Our indication of support has given the Council the opportunity to plan with certainty a stable budget process, giving vital confidence to Whitehall that a majority of councillors in this city will act to ensure that this authority will work to avoid capping. In such circumstances this is important factor the Council."

"There have been no deals in smoked filled rooms, and the Liberal Democrats will remain as vocal as ever over issues where we disagree with the Labour Administration."

"With intense pressure on services, we believe that this is the lowest sustainable figure for a tax increase, anything lower puts the Council's financial stability at risk."

"Our support has also been given on the basis that the council tax is an unfair tax. We want to see local government finance reformed and a new local income tax introduced based around the ability of people to play. The system is wrong and although change may be on the horizon, we still have to work with a flawed system until change is made."

"The public interest is also served by ensuring an as low as possible council tax rise. Residents have been quick to condemn hefty tax increases because many people simply cannot afford them."