| With the meeting to set Dundee’s council tax for the financial year 2005/06 just a couple of weeks away, the indications are the increase will be less than 5% — but not much less.
Inflation is currently running at around 2%, making it almost certain the city’s council tax rise will be at least double that figure.
The Band D tax set last year was £1135, giving Dundee the third highest figure among Scotland’s 32 local authorities behind Glasgow and Inverclyde.
At that time, the council also announced an indicative rise of 5% for the coming financial year, which would take the Band D level up to £1192.
While the actual increase for 2005/06 might not reach that figure, it is unlikely to fall short of it by more than a few pounds.
In common with most of the other Scottish councils, Dundee is due to set its council tax on February 10. Although a 5% increase is no cause for celebration, fears have been voiced that the situation later in the three-year budgetary cycle could be even worse.
Council depute chief executive (finance) David Dorward has expressed concern about the grant increases announced by the Scottish Executive for local government.
“It can . . . be concluded that the grant increases will not be sufficient to continue to fund the current level of services into 2006/07 and 2007/08 without significant budget reductions and/or significant increases in council tax,” he is on record as saying.
The unanimous view of councillors is that Dundee has been badly treated in the local government financial settlement.
There is all-party support for an approach to the Executive outlining the severe implications of the settlement for the city and seeking to have it revised.
However, given the imminence of the meeting to set this year’s tax, it is likely any revision would only affect the second and third years of the settlement. |
