Council Tax frozen for 2011/12

Aylesbury Vale District Council is freezing its share of council tax for the coming year despite the authority suffering a larger than expected drop in its grant funding from the government.
The zero per cent rise was agreed at a meeting of the full council on 2 February, meaning that local taxpayers will not face any increase on the average £2.52 a week they pay for all the services provided by AVDC.
Local authorities that accept the challenge of freezing council tax are eligible for a government grant equivalent to a 2.5 per cent increase in their element of the levy.
The 2011/12 budget was set against the national backdrop of unprecedented reductions in council grants to help tackle the UK’s current financial deficit.
The government’s grant settlement figures, issued to AVDC last December, were much worse than expected and mean a reduction in government funding of £2.6 million (22 per cent) for the next financial year with a further cut of £1.2 million (13 per cent) the following year.
Overall, the council faces an 8.4 per cent reduction in its total resources, the largest of any authority in Buckinghamshire.
Due to the severe financial constraints imposed on all local authorities by the government’s austerity measures, some difficult decisions have had to be made. But the council, which faces having to make even tougher decisions for the next three years, has done everything in its power to minimise the impact of the budget on frontline services.
To balance its books for the forthcoming financial year the council has identified around 1.8 million in savings across its services. Key savings include £650,000 made through restructuring some services and changes to the structure of the authority’s senior management team and a further £300,000 by making changes to working practices in the refuse and recycling service.
Councillors also approved making use of £445,000 from the authority’s financial reserves to help reduce the budget deficit. However, the reserves cannot be used to finance the shortfall indefinitely and significant savings will need to be found in subsequent years if key services are to be maintained.
It is anticipated that further savings of £2.6 million will need to be made by 2012/13 alone. The council’s priority is to continue to look for further efficiencies and find new ways of generating income.
Councillor Neil Blake, Cabinet Member for Resources, said: “In common with all local authorities, this has been an extraordinary year for budget setting against the background of such deep cuts from the government. We have, however, worked hard to maintain essential frontline services, freeze council tax at present levels and identify significant cost savings to assist us with what will undoubtedly be a very difficult budget setting next year.”
He added: “It is important residents know we are on their side and always looking to ensure value for money. We continue to think carefully about how to spend the funds we have. It is residents’ money and they rightly expect results from it.”