Minister sanctions Thurrock Council tax increase of at least eight per cent

By Nub News Reporter

18th Dec 2023 | Local News

Michael Gove says Thurrock Council can raise council tax above normal limit
Michael Gove says Thurrock Council can raise council tax above normal limit

RESIDENTS in Thurrock look certain to face another big hike in council tax next year after Levelling Up Secretary Michael Gove rubber-stamped an eight per cent increase – without the council having to ask for special permission.

Cash-strapped Thurrock raised council tax by 7.9 per cent last year to help plug the spending gap caused by its disastrous 'borrow to invest' policy. On top of that it added a 'ring-fenced two per cent increase to cover the rising cost of adult social care.

To do so the council had to go cap in hand and ask permission form the government., Normally, any increase over five per cent could only be sanctioned by a referendum of taxpayers.

The council hasn't even met to formally discuss next year's increase – though with the council running a budget deficit of tens of millions it always seemed likely it would be seeking to up the charge again.

Now, they have been given approval without asking to go for an eight per cent rise. And they are likely to include the adult social care levy on top, again making the tax rise 10 per cent.

In an announcement today (Monday, 18 December) Levelling Up Secretary Michael Gove said Thurrock – and a number of other struggling authorities - could make use of "additional flexibilities" and it can make an eight per cent increase without holding a referendum.

Mr Gove said: "Councils in significant financial failure can make use of any additional flexibilities provided to support their financial recovery and going forward the government will consider all reasonable steps to protect both national and local taxpayers and ensure councils are acting responsibly."

A statement from Thurrock council says: "The Local Government Finance Settlement announced on Monday 18 December includes reference to three local councils, including Thurrock, where a higher than standard council tax rise will be allowed for the financial year 2024/25. Today's statement makes provision for council tax to rise by up to 9.99 per cent.

"Once the Council has finalised its budget proposals in the new year, this will be a decision for councillors as part of the annual budget setting process at the full council meeting in February or March.

"For Thurrock Council, a core council tax referendum threshold of eight per cent has been set by government, with an additional further adult social care precept of up to 2 per cent, as allowed for all authorities responsible for adult social care services. This allows a total increase of 9.99 per cent without triggering a referendum."

     

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