Mid Devon share of council tax frozen for fourth year running

Posted on: 27 February 2014

At yesterday’s Full Council meeting in Tiverton (Wednesday 26 February), Mid Devon District Council set its budget for the financial year 2014/15. 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 Neal Davey said “This is great news for the people of Mid Devon. I am proud that we have for the fourth year running frozen council tax while maintaining our key frontline services at existing levels.”

Mid Devon District Council’s formula grant from central government has been reduced by over £2.0m over the past four years, with a further reduction of £656k scheduled in 2015/16. “The Council’s financial strength has been greatly improved over recent years. We have been making significant efficiency savings – through steady reductions from natural 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 2015/16 will be an extremely difficult challenge”, said Councillor Davey.

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 £28.43 from £1,576.82 in 2013/14 to £1,605.25 in 2014/15 (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 (70.9%), Mid Devon District Council (11.3%), 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 2014/15 will be 54.4% while the proportion accounted for by central government grant will be 45.6%. 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 four years.

For further information please contact Customer First:

Tel: 01884 255255

Email: customerfirst@middevon.gov.uk

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