The Budget
On Wednesday 10th February, Crawley Council’s Cabinet considers the budget for the financial year 2010/11. It is proposed that our element of the Council Tax will increase by 1%. It is actually 0.97% to avoid rounding errors on the bills. This increase is well below the inflation rate of 2.9% as measured by the CPI (Consumer Price Index). It was a Conservative election manifesto commitment to keep our tax rises to the rate of inflation or lower. We are pleased to have done what we said we would do.
Since the council becoming Conservative-controlled, the tax rises in 2006, there have been three annual Council Tax rises of 2% followed by one of 1%. Each of these four increases has been the lowest in all of Sussex, the lowest of all the 17 primary local authorities setting a tax. The compound increase in Crawley Council’s tax over four years has been just 7.2%. For comparison, the overall Council Tax paid in Crawley almost doubled between 1997 and 2005.
These highly competitive increases in Council Tax are achieved through continued efficiency savings, with £670,000 of these identified for 2010/11. We do not find efficiency savings for the sake of it. There is clear purpose to this – setting a value for money Council Tax, re-investing some savings in service enhancements and reducing our dependency on interest on capital reserves. This last point is crucial because it means that we can spend our capital on projects to benefit the town.
For 2011-13, we have added some £4 million to our existing capital programme. The value of just this addition would be enviable in some other local authorities. These extra funds will be spent on a range of items including affordable housing, flood prevention and waterways; disabled facilities grants, home insulation grants and community safety improvements. This is alongside our existing programmes for Decent Homes, neighbourhood parade improvements and the neighbourhood centre regeneration schemes for Bewbush and Langley Green.
The Council is also increasing revenue spending by £122,000 for improved tree maintenance and CCTV support. Our actions are against a backdrop of low interest rates affecting our income from capital reserves as well as a derisory increase in government grant. Crawley Council was awarded an increase of just 0.65% for 2010/11.
We are pleased and proud to have delivered such an effective budget in challenging economic circumstances. Despite the recession, we are setting a budget with a very low increase in Council Tax alongside significant increases in capital and revenue spending.
Is it a mirage? Is it smoke and mirrors? No, it is just very sound and responsible financial management.
Councillor Bob Lanzer, Leader of Crawley Borough Council
17th February 2010