The government’s chosen measurement for announcing councils’ spending power is “flawed”, a senior councillor has said.
Core spending power is the way the government publicises how much extra money there is for councils, but the portfolio holder for finance, Cllr Michael Headley (LibDems, Putnoe) says this measure is “flawed” and relies on increases in council tax.
“Core spending power isn’t just about inflation,” he told executive committee members on Wednesday (25 January).
“[You could] say ‘it’s below inflation, but at least it’s gone up’. Inflation is clearly about increased cost for doing the same thing, but we don’t just do the same thing.
“We have increased need, particularly within social care areas,” he said.
“So the government chooses to talk more about core spending power, and if you’re a resident you might hear Bedford’s got £12.3 million pounds more core spending power.
“You might think that’s a good thing, it’s good the council has got more money, they won’t need to come to me for more council tax.
“Actually within the core spending power, [the government] assumes we will be raising council tax,” he said.
“So when the government says we’ve got £12.3 million increased spending power, they are expecting us to get over half of that from local taxpayers.
“£6.8 million [of the core spending power] is what the government has assumed is increased council tax,” councillor Headley explained.
“And that’s the small print you don’t always see in government announcements,” he said.
The 7.6 per cent increase mentioned by the government was below the rate of inflation.
Councillor Headley added that this increase was also “relatively low” when compared to the averages for other types of councils or areas – which were also below inflation.
The General Fund Budget for 2023/2024 report said the increase in council tax assumed by the government is a 3.0 per cent increase for core council tax and a 2.0 per cent for the adult social care precept.
At next week’s Full Council, members will be asked to approve an increase in core council tax of 0.9 per cent, supplemented by a 2.0 per cent adult social care precept.
This total increase of 2.9 per cent will give an average Band D Council Tax of £1,737.92.
by John Guinn
Local Democracy Reporter
