CIPFA: Cap fits for Welsh Council Tax
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Thursday, 06, Mar 2008 12:00
The threat of capping by the Welsh Assembly Government has helped hold down council tax bills, it was argued today. Official figures reveal the average council tax increase for 2008/09 will be 3.9% across Wales, down on last year’s 4.4% increase. The survey of all 22 local authorities and 4 police authorities in Wales by the Chartered Institute of Public Finance and Accountancy (CIPFA) shows the typical bill for a Band D property will rise by £39, taking the average demand to £1,044.
Brian Gibbon, Minister for Local Government recently made clear his expectation that council tax increases should not exceed 5% - despite rising service pressures, creeping inflation and a funding settlement for local government from the Assembly of only 2.4%.
Maria Jones, Head of CIPFA Wales, said:
“The threat of capping by Cardiff Bay has almost certainly had the effect of keeping council tax increases down. The challenge for councils now will be to live within the tight budgets which lie behind these decisions and ensure that current levels of service are at least maintained and, if possible, improved.
Authorities will have endured a challenging budget-setting process over many months, and identified a number of efficiency gains to assist in meeting additional and possibly new demands on their resource base”
CIPFA’s figures revealed wide variations between local authorities, however, with Conwy and Ceredigion increasing their council tax bills by 5.0% compared to Isle of Anglesey’s 1.5% rise.
A common theme for all authorities was the rising demand for more funding for police services. South Wales Police and Dyfed-Powys Police both increased their share of the council tax demand – known as a precept - to 5%. While North Wales Police asked for a 4.5% increase.
The CIPFA survey is the most accurate and comprehensive examination of council finances available. The 3.9% increase in Wales is in line with a similar increase in council tax bills in England announced last week.
ENDS
Contact: Guy Roberts, Richard Taylor or Vicky Onslow
CIPFA Press Office, tel: 020 7543 5712/5687/5645
email: pressoffice@cipfa.org
Notes to Editors:
1. The survey results, upon which this release is based, will be updated daily on our website. The site also contains further information to assist in understanding the Council Tax increase: www.cipfastats.net
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