4pc council tax hike on the way

Protest by Link Centre users about its possible closure.

COUNCILLORS agreed proposals to raise council tax by almost 4 per cent during a budget meeting last night.

Oldham Council's Cabinet members also recommended budget savings for almost £15million, comprised of £9.498m worth of savings with the remaining shortfall made up from council reserves, to create a balanced budget for 2017/2018.

Under the proposals, which will now go before Full Council on March 1 for final approval, council tax will increase by 1.99per cent, the maximum a council can increase council tax by without having to hold a referendum, to pay for general council services.

An additional 2 per cent levy, allowed by the Government to go towards adult social care costs, has also been proposed.

The increases will equate to just less than £5 per month for a Band D property in the borough.

Council tax bills will also include a rise in levies imposed by the police and fire services.

In total, council tax for a Band D property in Oldham will rise by £63.80 from £1,660.56 in 2016/17 to £1,724.36 for 2017/18.

In addition, people living in Saddleworth, Shaw and Crompton will have to also pay parish council precepts, with those in Saddleworth paying an additional £1 and a rise of 35p in Shaw and Crompton.

Councillor Abdul Jabbar, deputy leader of Oldham Council, said: "Every year the budget process is very difficult.

"However, having been forced to make cuts totalling more than £207m over the last eight years, we're now at the point where it is almost impossible to find savings options that won't have a significant negative impact.

"This year we needed to save a total of £14.981m following budget adjustments but we have only found £9.498m worth of savings and are making up the shortfall from our reserves, which is unsustainable in the medium term.

"It's a huge problem because we must keep reserves strong in case of major civil emergencies.

"Local government is important to people. They want to see their communities looked after to a good standard, from parks and open spaces to roads, public buildings and other amenities.

"People also recognise that, in spite of the funding crisis, we must continue to improve the town or risk it becoming stagnant.

"That's what we've done by continuing to invest in regeneration projects like the fantastic old town hall cinema and restaurant complex but it's a very difficult balance to strike."

The council started to look for savings last autumn, and options ranged from reducing spending on maintaining street lighting and "back office" services such as finance and business support.

However, other controversial budget proposals, such as the proposed closure of the Link Centre and implementation of charges for residents' car parking permits, were withdrawn from consideration after public consultations.

The Link Centre, on Union Street was saved from closure in January after a decision was made to change its operating model with the council looking to lease the centre on a nil-rent basis on the condition the provider delivers specified services.

The reserves to create a balanced 2017/18 budget will be found from the current earmarked council reserves, which stand at a total amount of £78.598million.

Speaking about the council's struggle to find savings in the budget, Councillor Jabbar said: "Local government is being woefully underfunded and is now at crisis point.

"We're particularly concerned about the impact of continuing cuts on adult social care services which are by far our largest cost and will undoubtedly suffer further if nothing is done.

"I call on the Government to urgently review the funding of local government, ensure adult social care and children's social care are properly funded and stop passing on their ideologically driven cuts to the public by leaving us with no other choice but to increase council tax."

Cabinet members approved a 2 per cent rent increase for all Oldham Council properties as part of the Housing Revenue Account report.

The council's housing stock currently comprises 2,066 properties with all properties now being managed and maintained within two Private Finance Initiative (PFI) schemes.

The increase will see the average rent increase by £1.60 per week from April (from £80.02. to £81.62 on a 48 week basis), based on Government guidance.

Consultation on the rent increase has already taken place with executive members, service providers and tenants throughout the year.