Daventry District Council proposes a £5 a year increase in council tax

The increase, which works out at under 10 pence per week for the average home is to help bridge a reduction in government funding says the council.

The proposed £5 increase on the authority’s annual council tax precept for 2016/17 will be considered by members of the Council’s Strategy Group on Thursday (11 February).

The council has been given permission by the Government to increase its tax level by more than 2 per cent without needing a referendum because it is one of local authorities with the lowest tax levels in the country. It follows more details about the council’s funding settlement from the Government, which faces an anticipated cut of 16 per cent – higher than the 10 per cent originally factored into the authority’s financial plans.

In 2015 the council raised its tax level by 1.99 per cent, which equated to an extra £2.50 per year for the average Band D home.

Councillor Chris Long, Daventry District Council’s resources portfolio holder said: “Although we have always taken a cautious approach to our financial planning, these cuts to government funding are over and above what we had previously assumed.

“We will be presenting to councillors a proposal that will help us to bridge this shortfall, that is still in line with the Government’s acceptable range of council tax rises.

“In real terms the proposed increase would be just under 10p a week, or about 42p a month, which is less than the price of a pint of milk. However this small increase would make a big difference towards helping us address the funding gap to maintain local services.”

Daventry District Council’s share of the overall council tax bill is around nine per cent of the overall charge for households. The police, county council and parish or town council precepts make up the majority of the other 91 per cent.

Daventry District Council’s Strategy Group will meet to discuss the proposal on Thursday, 11 February at 6.15pm. Recommendations will then be made to Full Council on 25 February, before the Council Tax is set at a second Council meeting on 29 February.