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Budget 2012

Tuesday, 31 January, 2012

Budget 2012

Crawley Council has published its budget plans for 2012/13.  There is a Council Tax Freeze for the second year running and this continues the six-year track record of the lowest Council Tax rises in all of Sussex.

The budget plans go to Cabinet on 8th February and Full Council on 29th February.

The proposals include a return to a balanced budget, where income matches spending with no direct draw on reserves.  This means that the Council can use more of its capital (savings) for new projects instead of relying on interest to fund our day-to-day services.

Over the period 2011 to 2015, the Council has plans for spending a massive £63 million of capital.  Few, if any, district councils could come close to this level of spending.  Major projects completed and on-going include residential environmental improvement schemes.  These initiatives are always popular, improving parking arrangements and the appearance of our neighbourhoods.  More money has been allocated to bring new areas forward.

A big-ticket item is the comprehensive improvement of Ifield Millpond, following a very successful multi-channel public consultation.  The work will include the removal of a great deal of accumulated silt.  These efforts will restore the area to its former glory.

Other items within the Council’s huge capital programme include:

  • ·         A new "life centre" for Dobbins Place in Ifield West, acting as a quality community hub.
  • ·         The restoration of the nationally important Worth Park Gardens in Pound Hill.
  • ·         Disabled Facilities Grants.
  • ·         Investment in key publicly-owned assets such as The Hawth and K2 Crawley.
  • ·         Continued major improvements to the Council’s neighbourhood parade, including Tilgate, the largest of them all.
  • ·         New investment to improve Broadfield Barton.
  • ·         Enhancements to Maidenbower Pavilion.

There are two growth areas for annual service spending - £40,000 for flood prevention and £50,000 for improved street scene maintenance.

Thanks to prudent financial management, the Council is able to limit tenant rent increases to an average of 5.6% as compared to the government guidance figure of 8.35%.

As part of the budget, the Council plans to exit the national HRA (Housing Revenue Account) subsidy system, which sees £16 million of tenants' rents handed over the government every year.  To exit the system, it is planned to take out a series of loans, amounting to £262 million, at very competitive interest rates.  Taxpayers and tenants will be much better off as the contribution to government will cease.

By paying interest-only on the first 10 years of the loan, it will be possible to generate surpluses that can be used to build new housing or alter the tenure mix of new developments away from shared ownership towards social rented, where the housing need is greatest.

This is a budget with something for everyone – a Council Tax Freeze, huge capital investment across the town, a Council rent increase below the target level and new funds available for the delivery of social housing.

 

Councillor Bob Lanzer, Leader of Crawley Borough Council

31st January 2012