Council tax hike - decision expected tonight (From Chelmsford Weekly News)

Council tax hike - decision expected tonight

12:30pm Wednesday 15th February 2012 in News

A FINAL decision about whether council tax will go up in Chelmsford will be made tonight.

The council is set to defy the Government by rejecting a council tax freeze for the next financial year.

It has proposed to put it up by an extra £4.01 per year for the average Band D property.

Despite many taxpayers seeing their council tax frozen again in 2012, Chelmsford Council believes the "very small annual amount" could cover the costs of maintaining its services and would bring in an extra £250,000.

For 2011/12, councils were given a grant worth around 2.5 per cent of their budgets in return for freezing the tax. That cash was on offer for five years.

This year, councils have again been offered 2.5 per cent of their budgets for agreeing to a freeze, but that grant will only last for one year.

Councillor Roy Whitehead, leader of Chelmsford Council says this would mean having to put up council tax by twice as much in future to make up for the shortfall, which is why the council is addressing it now.

However, the proposal has come under fire by the TaxPayers Alliance.

Matthew Sinclair, director, said: "Over the last ten years there has already been a drastic increase in rates and, with so many other pressures on their finances, this is the last thing families in the area need.

"Chelmsford needs to follow the example of other local authorities who have shown it is possible to combine quality services with lower bills, and deliver much better value for money.”

The meeting will be held at the Civic Centre, in Duke Street, Chelmsford, at 7pm.