Kingston Council is set to peg a rise in council tax bills to less than two per cent following a two-year freeze.

Despite a third consecutive year of cuts to its government funding, Kingston Council has vowed to continue to deliver services that matter most to people.

This below-inflation rise is equivalent to 52p a week for Band D properties and is the first increase since April 2010.

In the three years to 2013/14, government funding for Kingston will have been reduced by more than one quarter (£18.1million), equivalent to £6.01 per week for every band D home. During the same period, applying the rate of inflation would have resulted in an increase of £3.27 a week. The effect of government cut backs and inflation would have resulted in a £9.28 per week increase in council tax for band ‘D’ properties if we had passed these on to taxpayers.

The Council has achieved this below-inflation increase for 2013/14 despite having to deal with an in-year reduction of £8.3million (14.5 per cent) in government funding, and providing £6million to meet increased demand led growth (mainly in Children’s & Adults’ Services) and inflation. We have achieved this by making in-year savings of some £10.4m and receiving some specific grant support.

As previously reported, Kingston Council is also protecting against most of the impact of the government’s abolition of Council Tax Benefit on low-income households, who would have potentially seen a sharp increase in what they pay. Three other London Boroughs have chosen not to do so, and instead to pass on the full impact of these changes to the poorest households, and as a result are facing the prospect of a Judicial Review of their arrangements.

Overall net council spending has been reduced in real terms by £18.1m (12 per cent) in the last three years, thanks to savings and efficiency measures, despite the impact of non-pay inflation and more being spent on key services including:

• £2.1m extra for children’s services;
• £4m extra over 3 years to meet the cost of growing numbers of older people and adults with learning disabilities;
• £0.9m extra to tackle homelessness, including increased costs of Private Leased Housing arising from national changes to housing benefit entitlements;
• £1.4m to improve the borough’s roads;
• £0.8m on waste disposal to deal with increased landfill tax.

Residents in Band D could have seen their council tax rise £170 due to inflation and a further £312 due to the current government’s austerity measures (a potential £482 increase in total) but due to our efforts made through tight finacial managment and both the One Council and  One Kingston programmes we have kept the impact on Kingston residents to £27 (Band ‘D’ properties).

This below-inflation increase will help to avoid painful cuts to services and maintain the council’s sustainable medium-term financial strategy. Working with our partners we will continue to make the best collective use of our shrinking resources to deliver high-quality services that residents expect.

says Cllr Rolson Davies, Lead Member for Finance and Resources

Our finances are being squeezed ever more tightly, the situation is the most severe for years.  “As the government’s cuts continue to bite we are doing our best to cut costs whilst protecting services that matter most to people.

added Leader of the Council

Councillors will approve the final budget and council tax for 2013/14 next month.