LIB DEMS SLAM LABOUR - CONSERVATIVE PACT TO RAISE FIRE AUTHORITY TAX (York Liberal Democrats)

York Liberal Democrats <info@yorklibdems.org.uk>

LIB DEMS SLAM LABOUR - CONSERVATIVE PACT TO RAISE FIRE AUTHORITY TAX

January 10, 2010 12:00 AM

Liberal Democrat representatives on North Yorkshire Fire Authority have slammed Labour and Conservative Councillors for voting in favour of a 2% increase in the Fire Authority element of Council Tax, despite being told a 1.3% increase would be enough.

Fire Service finance chiefs told Councillors that a 1.3% increase in the Fire Authority element of Council Tax would deliver a balanced budget for 2010/11, with reserves of almost £4.8m to cover unforeseen circumstances.

However, Labour and Conservative Councillors voted together, preferring to go for a 2% increase in the Fire Authority element of Council Tax.

The move came despite more than £500,000 of expenditure, due for 2010/11, being moved forward into this year to use up an under spend from the 2009/10 budget.

Liberal Democrat Councillor Tom Holvey, who represents York on the Fire Authority, said there was no justification for a rise above 1.3%. He said, "The budget presented by Fire Service Officers provides for £800,000 growth from this years budget."

"The 2% rise includes an extra £125,000 for a 'new projects fund' for unspecified projects. Given the strength of reserves any new projects could be funded by borrowing from reserves rather than adding this extra amount into the budget."

"There is enough extra money available in the budget proposals from officers to fund the work of the service and to provide for any unexpected events."

"In these hard times I think it is hard to justify increasing Council Tax by any more than is necessary. A fundamental of taxation policy should be that we only ask for what we need, raising taxes over and above this is not justifiable especially at a time of economic restraint"

Councillor Keith Aspden, who also represents York on the Fire Authority said, "The budget would balance with a Council Tax rise of 1.3%, with reserves running at about the recommended 15% of the budget. The Fire Authority is in pretty good shape financially and I can't see a reason why there should be a higher rise in Council Tax than the officers proposed."