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22 Feb 00

BUDGET STRATEGY FOR 2000/2001

Officers will be advising Poole's Policy and Resources Committee tomorrow that Poole is still poorly funded by Central Government and that if Poole wants to maintain existing levels of service, there is no option other than to increase Council Tax.

The Borough started with a low funding base as a new Unitary Council in 1997 and, for the last three years, it has struggled to maintain the level of services. Whilst the Government has accepted that the system is unfair, it has not agreed to meet with Poole Councillors or MP's and has not responded to Poole's difficulties.

Poole received the second lowest increase in funding of all unitary councils, leaving Poole with £156 per person less funding for services than the national average. Poole officers have calculated that to maintain the level of services as the Council's committees have requested, an increase in budget of 5.9% would be required. Due to the Government's funding methods, this would in turn require a rise in Council Tax of 12.8%. For a Band D house, this would mean an increase of £1.54 pence per week.

Council Leader, Brian Clements said: "Government's assessment of Poole's needs has increased by just 3.5%. For our schools, that only just covers the Teachers pay award. The Government's message to Poole seems to be that if it wants to maintain local services, this will have to be paid for out of Council Tax rises. I am acutely aware that, if this budget is accepted, a single pensioner living in the smallest property will face a £44 (85p per week) increase in Council Tax with only 73p increase in their pension. This compares with £88 (£1.69 per week) for two or more people in a band D property, with the wealthiest residents paying £176 (£3.38 per week) if they live in a house valued over £320,000. Against these, we have to balance the service needs causing the increase."

Since Poole became an all-purpose Council, Poole has had the lowest Council Tax in Dorset and one of the lowest in the country. It is currently in the lowest 8% of all areas (328 out of 354 billing authorities).





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14 February 2000

BUDGET STRATEGY FOR 2000/2001

Council Leader, Brian Clements said: "Where we have cut services in order to reduce costs, local public opposition has been fierce. The Government seems to be saying that Poole is an affluent place and that if Poole wants to have decent services, it will have to pay for them from the Council Tax. We have been able to keep Council Tax relatively low in Poole, but this settlement means that our tax is likely to be nearly as high as our neighbours."

The overall poor funding level is highlighted in the area of Highways, where the Government has allowed for no increase in spending at all. There is considerable pressure on local services, especially Social Services where the demand for services for the most vulnerable has already exceeded the budget in the current year. Another local service under great pressure is waste collection and disposal, with increases in the Landfill Tax and the volume of waste generated by the community."

The Government's increase in spending for Education allowed Poole 3.5% compared to the national average of 5.5%. This has left Poole as the 143rd worst funded Local Education Authority (out of 150) by Government in the country.

Councillor Annette Brooke, Chairman of the Education Committee said: "Poole's children are already appallingly funded. The Government's proposals would make this even worse. The funding would only cover the expected Teachers Pay award and the increase in pupil numbers and nothing else. It will place huge pressure on our schools at the same time that they are being required to reduce class sizes. This situation is unacceptable. Our education is our future. Because of this, as Chairman of the Education Committee, I have asked for an additional £916,000 for our schools which will be linked to improved partnerships with schools to ensure benefits for the whole community. I hope that the Council will agree so that we can continue to improve education standards in Poole."

The reduction in funding is largely due to a reduction in the number of children in families claiming income support. When these changes are applied to the Government's formula for funding the Council, the results can be extreme. This was shown last month, with Poole children 13 times less likely to get Government funding for nursery places than children in Bournemouth.

david williams