A 4.99 per cent council tax rise looks likely to be added to residents' bills, despite them being the highest in the country. 

At a Rutland County Council cabinet meeting this morning (Tuesday, February 11) the six-member cabinet led by Gale Waller (Lib Dem) decided to back the council tax increase, which is expected to be adopted by the full council at the end of this month. 

Cabinet member for finance Andrew Johnson (Lib Dem), said the last-minute changes to local government funding by the Labour government has reduced the money coming into Rutland for the financial year ahead by £1.5million. The authority spends about £50million annually, with most of it coming from local tax. 

In the last financial year, the average Band D household paid more than £2,500 in Rutland, once police and fire service charges were added. Occupants of a Band D home in neighbouring South Kesteven paid about £500 less last year. 



Rutland County Council recieves regular criticism from residents about the high council tax they pay (Photo: Grace Kennington)

At the meeting held at Catmose House in Oakham, Councillor Johnson said: "We received no help for the inflation in our costs at all. In other words, our funding is going backwards. We are receiving less from the government this year than we received last year, and it appears less than any other local authority. 

"Rural councils like ours are seeing their funding reduced as the government favours urban councils and those with a higher deprivation index. 

"For example, the rural services grant which was worth £1.1million to us was discontinued and not replaced. Given the overall changes confirmed in the final settlement and the proposals for local government reorganisation, the future financial outlook for the council has never been more uncertain. 

"This has made setting the budget this year extremely difficult for us. We would like to do more in many ways, but the lack of funding means we just do not have the freedom to act. We really are compromised in what we can do." 

The budget being proposed for the financial year ahead is £55.9million, with adult social care allocated £19.2million. 

If approved, Band D taxpayers will pay an extra £105.46 on the current year for council services. Police and fire service charges are set separately before being added to council tax bills. 

Cabinet members also discussed the current budget, which has an overspend over just under £3million on schools. This has been dictated by more children needing special schools and specialist support. 

The cabinet member for children's services Tim Smith (Lib Dem) said Rutland's situation was not unique. As it stands the schools budget deficit – which could rise to £6million by the end of March, would need to be repaid to the government. This would significantly deplete the council's reserves. 

Waste and recycling for the council is currently under budget for the year.