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Affordable Council Tax + sustainable services = a well-balanced budget

Thursday 25 February

East Devon District Council must ensure that it strikes the right balance between continuing to deliver sustainable local services whilst not over-burdening residents with Council Tax bills during difficult financial times for all.

That was the message this week from Councillor Sara Randall Johnson, EDDC’s Leader, as Members of the Council last night (24 February) agreed the budget for the coming financial year.

The key elements of the Council’s 2010/11 budget are:

• An inflation-matching rise in council tax of 2.9% – still the lowest rate in Devon
• The average household paying just £2.34 a week for EDDC services
• A 3.1% increase in council house rents in line with Government Social Rent guidelines
• A moderate rise in car park charges, with improved concessions for residents*
• A 10% increase in garage rents to bring these more into line with commercial rates
• Continued investment in the successful waste and recycling service
• Sharing senior managers with other councils
• Savings in other services to deliver greater value for money

Miss Randall Johnson said she appreciated that hard times were not over for many local people – indeed the full brunt of the recession was only now kicking in for some – and that includes local authorities.

With revenue from fees and services down, and low interest rates severely limiting EDDC’s investment income, the Council itself was having to find ever more creative ways of continuing to deliver value-for-money services.

She defended the decision taken last year to freeze Council Tax, saying this had given local people a much-needed respite at the height of the recession. But EDDC could not sustain borrowing from reserves to avoid moderate increases in Council Tax and charges.

Sara Randall Johnson continued: “This has been a real roller-coaster year for EDDC and other district councils in Devon. We have had to continue with business as usual with a Sword of Damocles hanging over us – in the form of the uncertainty caused by the Government’s Unitary proposals for Devon.

Businesslike

“That uncertainty has now been removed for us, but continues to haunt our County Council colleagues. Safe in the knowledge that we are still in business, we now need to ensure that we run East Devon in the most businesslike way possible.

“We’ve looked very carefully at where we can make savings. In some areas we have dared to think the unthinkable and have then worked out ways of saving services we thought might have to go. An example is the street cleaning operation, which will now continue as before thanks to savings found in other parts of our StreetScene service.

“I’m pleased that, following talks with town and parish councils, and an online survey of our residents, we have been able to find sensible compromises that will allow us to avoid the ‘Bronze Service option’. For example, I am delighted that Exmouth Town Council is considering entering into an agreement with us whereby next year they may fund part of the high levels of ground maintenance and flower planting currently provided by EDDC.

“It’s important that we continue to deliver the services that people want – not just the ones that we are legally obliged to provide. That’s why we have listened to the views of residents and Members and have pulled back from cuts to street cleansing and some ground maintenance. The core funding grant to the Citizens’ Advice Bureau remains intact”.

Tribute

Sara Randall Johnson paid tribute to many of the council’s officers who have been involved in efficiency exercises to find savings that will contribute towards the new year’s budget. This process would continue as EDDC went through a service rationalisation review in the coming months, based on last year’s Leader’s Transformation Group study.

But she said it was no longer enough to look internally at saving money. EDDC had to look outside and one obvious option was sharing services with a neighbouring council.

EDDC will be sharing one of its directors – Karime Hassan – with Exeter City Council on a temporary basis from April this year.

And EDDC has started talking to South Somerset District Council and will shortly (from 22 March) be sharing its Chief Executive Mark Williams with its Somerset neighbour.

“The savings that we hope to make through this growing relationship are not only designed to help us through the current year, but should have an impact on budgets further down the road, when we expect the pressure on public sector spending to hit local councils through lower Government grants,” she added.

Sara Randall Johnson concluded by reminding East Devon residents that Council Tax bills may still go up by more than 2.9% overall – due to charges made by others. But residents would pay only a small increase for services provided by EDDC.

* The local impact of the increase in car parking charges would be offset for East Devon motorists by an improved season ticket offering. The ‘restriction of use’ (Mon-Sat), on permits will change so the permit is valid for one visit of up to three hours in any day instead of two hours as before.

The standard hourly parking charge will go up from 85p to £1, with effect from Monday 29 March, but charges in Honiton’s Dowell Street, Ottery’s Land of Canaan and Axminster’s Coombe Lane will be frozen.

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