FREE BUS TRAVEL SET TO INCREASE COUNCIL TAX AND CAR PARK CHARGES
| Published: 31st January 2008 14:44 |
The council tax local people pay, funds only 12% of Lichfield District Council's services. A yearly government grant, together with other grants and income from services, such as the Lichfield Garrick and leisure centres, helps to fund the rest.
Councillor Colin Greatorex, Cabinet Member for Finance, Revenues and Benefits explained: "This year Lichfield District Council's government grant increase has been drastically reduced to around 1% for the next year, and subsequent two years. This increase is below inflation and does not even cover annual rises in fuel, insurance and staff costs.
"On top of this, the government's new concessionary fares scheme, which gives free bus travel to the over 60s, will cost taxpayers at least £100,000 extra a year to roll-out, as it is not fully supported by central government funding. To pay for the additional bus pass scheme alone would result in a 2.5% effect on council tax. This comes on top of the council's limited ability to raise income through planning due to government restrictions.
"Overall the Council is being starved of adequate funding and, as a result, we have no alternative but to look at above inflation rises to all our income areas, including increases in council tax and car park charges."
The Council's budget will be discussed at the forthcoming meeting of the Executive on 5th February, and further details will be released before the meeting.
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