Council to freeze its share of council tax for financial year 2015/16
Posted on: 3 March 2015
At last week’s Full Council meeting in Tiverton (Wednesday 25 February), Mid Devon District Council set its budget for the financial year 2015/16. The Council is pleased to announce that it froze its share of council tax for the financial year and did not make any cuts to frontline services.
Next financial year, the average Band D household will pay Mid Devon District Council £182.15, the same as this year. Commenting on the freeze, Cabinet Member for Finance Councillor Peter Hare-Scott said “This is great news for the people of Mid Devon. I am proud that we have for the fifth year running frozen council tax while maintaining our key frontline services at existing levels. This reflects the hard work that both officers and councillors have undertaken during 2014/15 to reduce the cost of providing services.”
Mid Devon District Council’s formula grant from central government has been reduced by over £2.5m over the past five years. “The Council’s financial strength has been greatly improved over recent years. We have been making significant efficiency savings – through steady reductions from natural staff turnover, more flexible working and generating greater income across a number of service areas. We are therefore in a much better position than many other councils to deal with the current financial constraints. Our strategy for the future is to continue achieving more efficiency savings, but we know that providing a balanced budget without making some reductions to frontline services in 2016/17 will be an extremely difficult challenge”, said Councillor Hare-Scott.
The amount Mid Devon residents will be charged will go up, however, since the Mid Devon charge represents only a small proportion of the total council tax bill. Devon County Council, Devon & Cornwall Police and Devon & Somerset Fire & Rescue authorities will all be making small increases in their charges (1.99%), as are some parish councils.
Therefore the total council tax bill for an average Band D household will go up by £31.35 from £1,601.62 in 2014/15 to £1,632.97 in 2015/16 (although households will see slight variations depending on their local town/parish charges).
Where council tax money goes
The total amount payable by Mid Devon residents comprises contributions to Devon County Council (71.1%), Mid Devon District Council (11.1%), Devon & Cornwall Police Authority (10.4%), Devon & Somerset Fire & Rescue Authority (4.8%) and local parishes (2.6%).
Where the Council gets its income from
The proportion of the Council’s General Fund revenue account income accounted for by council tax in 2015/156 will be 56.0% while the proportion accounted for by central government grant will be 42.1%. By comparison, back in 2010/11 these proportions were 46% from council tax and 54% from central government grant. This highlights the significant reduction in government funding over the past five years.
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