COUNCIL tax is set to be frozen this year for the fourth year in a row by the borough council.
The authority has also announced that no redundancies are expected to take place at borough council during the next financial year, despite the authority receiving £100,000 less from Westminster. But while the borough’s frozen council tax, other authorities, such as the police, may choose to hike up their share of the tax.
A report from the borough’s head of resources, presented to the council’s cabinet on Monday, said the reduction in funding was less than expected. However, it warned that the financial settlement for the following year, 2014/15 is worse than first thought.
The head of resources report said: “This reduction in funding for 2013/14 is however less severe than the council had anticipated.
“As a result and in conjunction with other budget proposals already identified, the projected budget gap presented in prior budget reports has been closed. It is expected that the authority will be able to balance its 2013/14 budget without the need for compulsory redundancies.”
The report said further work was needed to ensure the budget is balanced from 2014/15 onwards.
“It is recommended that the process put in place to identify revenue savings and income generating opportunities is continued, so that these plans can be further developed and focused upon delivering a balanced budget.”
Regarding the freezing of council tax for 2013/14, it has been confirmed that authorities who do not increase their basic amount of tax will receive a grant equivalent to one per cent its council tax base for. This grant will be provided for two financial years over 2013/14 and 2014/15, for Rugby, this grant would amount to approximately £60,000 per annum. The council’s final budget for the next financial year will be settled and approved at a meeting on February 26.