Council tax rises by 4.99 percent (From Barry And District News)

Council tax rises by 4.99 percent

BARRY taxpayers are facing a hike in their Council Tax of nearly five percent.

The local authority want to increase their bill by 4.99 percent to meet increased spending planned for the next 12 months.

The Vale of Glamorgan Council is set to spend nearly £148 million in 2004/2005, which meets National Assembly spending targets.

But officials say they plan to make savings elsewhere in order to keep the tax increase below last year's spiralling rise of just under nine percent.

This increase will see homeowners in the average Band D property, which are houses that are valued at over £51,000 but not exceeding £66,000, paying £683.82.

This will be an added £32.49 on their current expense.

Leader of the Vale of Glamorgan Council Cllr Jeffrey James said: "This year, the Council Tax in the Vale will rise by just under five percent. This has been achieved after the council worked hard to ensure that the impact of a modest settlement from the Welsh Assembly on Vale Council Tax payers was kept to a minimum, while ensuring that investment in services continues.

"The council will be using some it its limited reserves to make up the shortfall in budget in some areas, to avoid that responsibility being passed to local people in the form of a bigger increase in Council Tax. This approach is in line with the District Auditor's recommendations."

The Vale's finance director, Sian Davies, reported to the meeting held on January 28. In her report she highlighted the use of a considerable amount of specific reserves, and that this was not sustainable in the long run. She sited the £1.2 million community services overspend on residential and nursing care as being a major factor, but said urgent action is being taken to find savings.

Cllr Jeffrey James added: "It is a challenging budget. Some savings that were proposed were not accepted because they would have reduced services."