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Conservative-led Surrey County Council plans 15% council tax hike Conservative-led Surrey County Council plans 15% council tax hike
(35 minutes later)
A Conservative-run council wants to raise its tax by 15% in the next financial year, blaming government cuts and increased demand for social care.A Conservative-run council wants to raise its tax by 15% in the next financial year, blaming government cuts and increased demand for social care.
Surrey County Council leader David Hodge said the government had cut its annual grant by £170m since 2010.Surrey County Council leader David Hodge said the government had cut its annual grant by £170m since 2010.
The move will trigger a referendum in Surrey, including in Chancellor Philip Hammond's constituency. The proposed increase would add nearly £200 to a Band D bill, bringing it to about £1,500.
The rise will add nearly £200 to a Band D bill, bringing it to about £1,500. The government has not yet commented. The government said if the proposed budget is set, taxpayers would have the final say at the following referendum.
Any authority wanting to increase council tax by more than 2% must put the plans to a vote. This would take place on 4 May, alongside local elections, and would include a vote in Chancellor Philip Hammond's constituency of Runnymede and Weybridge.
'Unaffordable for many'
Opposition councillors in Surrey said the increase would be unaffordable for many residents and it followed financial failings by the council and the government's failure to fund services properly.Opposition councillors in Surrey said the increase would be unaffordable for many residents and it followed financial failings by the council and the government's failure to fund services properly.
Three cabinet ministers
Mr Hodge said the council had to set a budget for 2017-18 that would protect vital services.Mr Hodge said the council had to set a budget for 2017-18 that would protect vital services.
He said: "Government has cut our annual grant by £170m since 2010 - leaving a huge gap in our budget.He said: "Government has cut our annual grant by £170m since 2010 - leaving a huge gap in our budget.
"Demand for adult social care, learning disabilities and children's services is increasing every year."Demand for adult social care, learning disabilities and children's services is increasing every year.
"So I regret, despite us finding £450m worth of savings from our annual budget, we have no choice but to propose this increase in council tax.""So I regret, despite us finding £450m worth of savings from our annual budget, we have no choice but to propose this increase in council tax."
Council tax contextCouncil tax context
We can't say what the average rises are set to be this year, as not all local authorities have declared their intentions.We can't say what the average rises are set to be this year, as not all local authorities have declared their intentions.
However, last year, the average Band D council tax set by local authorities in England for 2016-17 was £1,530, which was an increase of £46 or 3.1% on the 2015-16 figure of £1,484. (1.6% of that was the adult social care precept)However, last year, the average Band D council tax set by local authorities in England for 2016-17 was £1,530, which was an increase of £46 or 3.1% on the 2015-16 figure of £1,484. (1.6% of that was the adult social care precept)
So Surrey's rise is five times last year's average.So Surrey's rise is five times last year's average.
This shows how council tax hikes were brought down post 2008 but are now on the rise again.This shows how council tax hikes were brought down post 2008 but are now on the rise again.
Liberal Democrat leader Hazel Watson said a 15% rise would hit the elderly and those on fixed incomes hardest. Liberal Democrat leader Hazel Watson said a 15% rise would hit the elderly and those on fixed incomes hardest.
She said: "It is astonishing that the Conservative administration think Surrey residents should carry the can for their own financial failings and the government's failure to properly fund services."She said: "It is astonishing that the Conservative administration think Surrey residents should carry the can for their own financial failings and the government's failure to properly fund services."
She called for a national solution to the funding of adult social care but said the Conservative council had failed in its negotiations with central government, even though three cabinet ministers were Surrey MPs.She called for a national solution to the funding of adult social care but said the Conservative council had failed in its negotiations with central government, even though three cabinet ministers were Surrey MPs.
Cabinet ministers in the county include Chancellor Philip Hammond, Runnymede & Weybridge MP, Transport Secretary Chris Grayling, Epsom & Ewell MP, and Health Secretary Jeremy Hunt, South West Surrey MP. Transport Secretary Chris Grayling and Health Secretary Jeremy Hunt are MPs in the county along with Philip Hammond.
Under government rules, any authority wanting to increase council tax by more than 2% must put their plans to a local vote. A Department for Communities and Local Government spokesman said: "If the council sets this proposed budget, then the taxpayers of Surrey will have the final say in a referendum in May. We should trust the people.
"Our long-term funding settlement means more spending power for Surrey County Council during this parliament, with £3.2 billion to deliver the services that local people want."