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Thurrock Council proposes 9.99% tax increase and budget cuts | Thurrock Council proposes 9.99% tax increase and budget cuts |
(about 1 hour later) | |
The average Band D property homeowner in the area would pay £1,585.17 in council tax next year | The average Band D property homeowner in the area would pay £1,585.17 in council tax next year |
A council that is effectively bankrupt has proposed a series of cost-cutting measures and a significant tax increase for residents of 9.99% | A council that is effectively bankrupt has proposed a series of cost-cutting measures and a significant tax increase for residents of 9.99% |
Thurrock Council in Essex, which has debts of about £1.5bn, has published its proposed budget for 2023-24. | Thurrock Council in Essex, which has debts of about £1.5bn, has published its proposed budget for 2023-24. |
The Conservative-run administration plans to reduce street cleaning, end non-statutory youth work and withdraw subsidy for three bus routes. | The Conservative-run administration plans to reduce street cleaning, end non-statutory youth work and withdraw subsidy for three bus routes. |
Council leader Mark Coxshall said it had made "tough decisions". | Council leader Mark Coxshall said it had made "tough decisions". |
"This reflects the seriousness of our position," said Mr Coxshall, who claimed the proposed new tax rates would still be cheaper than local authorities of a similar size. | "This reflects the seriousness of our position," said Mr Coxshall, who claimed the proposed new tax rates would still be cheaper than local authorities of a similar size. |
"I have no doubt that this is the right thing to do if we are to recover from our financial position and put our budget on a sustainable footing." | "I have no doubt that this is the right thing to do if we are to recover from our financial position and put our budget on a sustainable footing." |
The council, based in Grays (pictured), has suggested saving £455,000 by removing subsidy for three bus routes | The council, based in Grays (pictured), has suggested saving £455,000 by removing subsidy for three bus routes |
The tax rise would mean the average Band D homeowner in Thurrock would pay £1,585.17 per year, up from £1,441.26. | The tax rise would mean the average Band D homeowner in Thurrock would pay £1,585.17 per year, up from £1,441.26. |
Mr Coxshall said there was a hardship fund for "those who might struggle" with the increase. | Mr Coxshall said there was a hardship fund for "those who might struggle" with the increase. |
Bankrupt council can raise council tax by 9.99% | Bankrupt council can raise council tax by 9.99% |
Bankrupt council has systemic weaknesses - leader | Bankrupt council has systemic weaknesses - leader |
Council with £469m budget gap 'took risks' | Council with £469m budget gap 'took risks' |
The council hopes to make these savings by making several cuts to services: | The council hopes to make these savings by making several cuts to services: |
£2m - closing some staff vacancies | £2m - closing some staff vacancies |
£455,000 - withdrawing bus subsidy payments for three routes | £455,000 - withdrawing bus subsidy payments for three routes |
£264,000 - reviewing street lighting and dimming lights accordingly between 00:00 and 05:00 | £264,000 - reviewing street lighting and dimming lights accordingly between 00:00 and 05:00 |
£250,000 - charges for domiciliary care for some users | £250,000 - charges for domiciliary care for some users |
£150,000 - increasing trade waste service charging and new charges for commercial food waste | £150,000 - increasing trade waste service charging and new charges for commercial food waste |
£126,000 - partly by ending youth work that is not essential/mandated by government | £126,000 - partly by ending youth work that is not essential/mandated by government |
£116,000 - reducing street cleaning, grass verge cutting and the "clean and green" operation | £116,000 - reducing street cleaning, grass verge cutting and the "clean and green" operation |
£30,000 - banning vans from household waste recycling centres to stop commercial waste from being tipped | £30,000 - banning vans from household waste recycling centres to stop commercial waste from being tipped |
Thurrock Council is in debt following a series of high-risk investments and says it is facing losses of £162.5m next year. | Thurrock Council is in debt following a series of high-risk investments and says it is facing losses of £162.5m next year. |
It borrowed hundreds of millions, mainly from other councils, to invest largely in financial bonds linked to solar energy farms. | It borrowed hundreds of millions, mainly from other councils, to invest largely in financial bonds linked to solar energy farms. |
The former chief finance officer Sean Clark, who was warned about "unprecedented" risks in 2018, has resigned. | The former chief finance officer Sean Clark, who was warned about "unprecedented" risks in 2018, has resigned. |
The government intervened and appointed neighbouring Essex County Council as commissioner to oversee financial decisions. | The government intervened and appointed neighbouring Essex County Council as commissioner to oversee financial decisions. |
The council proposes reduced street cleaning in Thurrock, including in Tilbury (pictured) | The council proposes reduced street cleaning in Thurrock, including in Tilbury (pictured) |
Thurrock was given exceptional permission from government to increase its share of council tax by 9.99% and the budget proposals rely on £180m in bailout support being granted from Westminster for next year. | Thurrock was given exceptional permission from government to increase its share of council tax by 9.99% and the budget proposals rely on £180m in bailout support being granted from Westminster for next year. |
John Kent, the leader of the council Labour opposition, said a 9.99% increase would be a "slap in the face to residents" and that his group would not support anything above 5% without a "local referendum". | |
"The impact of the Tories bankrupting our council is becoming clear - we will all be paying much more and getting much less in return for years to come," he said. | |
The Conservative cabinet councillors will vote on the budget on Wednesday and it will need rubber stamping at a full council meeting on 1 March. | The Conservative cabinet councillors will vote on the budget on Wednesday and it will need rubber stamping at a full council meeting on 1 March. |
Find BBC News: East of England on Facebook, Instagram and Twitter. If you have a story suggestion email eastofenglandnews@bbc.co.uk | Find BBC News: East of England on Facebook, Instagram and Twitter. If you have a story suggestion email eastofenglandnews@bbc.co.uk |
Related Topics | Related Topics |
Thurrock Council | Thurrock Council |
Local government | Local government |
Austerity | Austerity |