Council tax up 3.6%

OLDHAM councillors last night approved budget proposals that will put council tax up 3.6 per cent.

The council will increase its element of the council bill by 3.7 per cent - equal to an extra 66p a week for more than 50 per cent of Oldham residents who live in the cheapest Band A properties.

The overall bill falls back to a 3.6 per cent rise because amounts paid for police and fire services will be lower.

Two per cent of the council’s 3.7 per cent increase comes from a new levy announced by the Government to help councils meet the rising cost of adult social care - described by council leaders as an “Osborne tax”. The additional 1.7 per cent will be to help pay for Living Wage costs.

The 2016-17 proposals were backed by all Oldham’s 45 Labour councillors and the two Conservatives, with the remaining 13 abstaining.

A common theme of speeches in the council chamber was worry over yet more cuts from central government.

The rise is the first council tax increase in Oldham after a two-year freeze and comes after millions of pounds in cuts to services and a warning of £20.5 million more to come next year. Since 2009 Oldham Council has had to find savings of close to £200million.

Deputy council leader Abdul Jabbar, responsible for finance and HR, said last night that during his five years in charge of finance he has consistently had to deliver a bleak message.

“We have taken every possible opportunity to lobby government for additional resources to address adult social care but the Chancellor has now decided to push that problem on to local council tax payers rather than dealing with it properly at national level.

“Not just content to leave councils with a huge funding problem around adult social care, the Government has also withdrawn the council tax freeze grant. We had been planning to deliver no increase and expected to take that grant again.

“I put these budget proposals forward tonight with a heavy heart — as do all my colleagues on these benches.”

Newly-elected leader of Oldham Council Jean Stretton said: “I am angry to be here tonight proposing a 3.7 per cent increase. All that great work and dedication, that remodelling of services to protect them for residents, that co-operative working — and then we get hit by the Osborne tax.”

The largest chunk of last night’s meeting saw councillors debate amendments to the budget proposals from Liberal Democrat councillors.

The party proposed the money generated by a rise should be spent differently, with £5million on improving local roads and investment in gulley cleaning to help reduce flooding issues.

Lib-Dems also wanted local councillors - cut from 60 to 40 members - to be given a budget of £50,000 to spend in their wards and to retain enforcement officers to combat dog fouling, fly-tipping and provide bulky waste collection.

Councillor Sykes said: “These investments reflect what our citizens say they want.”

Councillor Arooj Shah, cabinet member for performance and corporate governance, said: “I can’t believe how much the Lib-Dems underestimate the role of councillors. We work absolutely tirelessly to ensure we represent all of our residents in the borough.”

Controversial UKIP councillor Warren Bates spoke in favour of the Lib-Dem amendments and said he would like to see a 50 per cent reduction in councillors’ allowances - then voted against the amendments, as did his UKIP colleague Councillor Peter Klonowski.