The Cabinet of North Dorset District Council has recommended to the council that it raise its share of council tax by £3.65 per year (for an average band D property).
This is so that it can continue to deliver the services that local people want and to continue to provide affordable housing in the area.
The final decision on this will be taken at the council meeting on Thursday 23 February 2012.
Councillor Peter Webb, leader of the council, said: “The average band D property in North Dorset will be asked to pay £108.43 for all its district council services. This is approximately £60 less than the national average and considerably less than any other Dorset council. Although the increase represents a 3.49% rise on the district council element of the council tax bill, it actually represents an increase of only 0.2% of the total bill.”
The increase will bring an additional £100,000 to the council, to assist in the delivery of current services, and will benefit those on the housing waiting list as well as pensioners and disabled people because the council will be able to invest in better concessionary travel arrangements.
The council has reduced net costs by more than 41% in recent years by a range of measures including sharing services with other councils and reducing management costs.
Employees have had their pay frozen for the last two years which is the equivalent of a pay cut.
The Cabinet decided not to recommend acceptance of the government’s offer of a “freeze grant” because it is offered for only one year. It would only have raised £71,000 and would create a very significant increase in council tax in 2013/14 which is unlikely to be acceptable.
The council tax bill is made up of charges from Dorset County Council, Dorset Police Authority, Dorset Fire Authority and North Dorset District Council together with charges from town and parish councils. The district council element represents approximately 7% of the bill.
Rural councils such as North Dorset receive less government funding per head of population than other urban councils.
The council is likely to have to make large reductions in its budgets from 2013/14 because of changes in government funding. The decision to recommend raising the council tax is based on securing the future viability of the council.
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