Clash as Portsmouth residents face council tax hike to avoid deep cuts in services

Supporting the financial wellbeing of staff can bring a raft of benefits. Abode Stock

Conservative councillor Matthew Atkins tabled a notice of motion at a recent full council meeting, calling on the Liberal Democrat administration to “make a serious effort to avoid raising council tax”. It adds that the cabinet should provide a budget proposal that avoids a rise in council tax entirely or “by at least a full percentage point less than the maximum allowed without a referendum”.

Councils that provide adult social care services, which includes Portsmouth City Council, can increase council tax by up to five per cent without triggering a referendum. Currently, a band D home pays £1,648.87 to the council yearly, a five per cent increase for a second year in a row would mean an extra £83 on their bills.

Cllr Atkins said: “As a member of the opposition we don’t scrutinise a portfolio throughout the year in the level of detail as a cabinet member can do. Every year I have been on the council the Liberal Democrat administration has sought the highest maximum council increase. The member of the cabinet who’s responsible for each portfolio should be continually looking into their portfolio so see where sensible saving can or could be made.”

In response, the council leader Cllr Steve Pitt said that the five per cent increase is critical for achieving a balanced budget according to financial forecasts. He added that due to the uncertainty surrounding social care costs, inflation and funding reform, the council’s future forecast could vary by up to £5m.

ALSO READ: £45m revamp of Gunwharf is on the cards

Each one per cent reduction of council tax equates to around £1m which will incur a reduction in council services to the same value, the meeting heard. Cllr Pitt said it’s estimated that the council could face £13.5m of “unavoidable demand and price-driven budget pressures” next year. In closing, he said the council is in a “critical time” for local government and that vulnerable people are being more at risk “ because this government keeps cutting our funding”.

Cllr Atkins said he’s “happy” the motion has revealed the council’s intent to raise council tax by five per cent in February. “Somehow fiscal discipline has been taking more money from residents rather than finding cuts – I know that cuts are painful but the residents should be at least allowed to choose.”

The motion was not carried by members.