Council facing cash crisis

Council tax in Stafford would need to rise by almost 10 per cent in order to plug a financial blackhole in the borough council's budget.

The authority is facing a £660,000 shortfall next year which equates to a 9.7 per cent rise in its share of the council tax, although any actual rise in tax will be substantially less.

Ruling councillors will meet to discuss the dire state of the council's finances next week when they will debate different options to fill the gap.

Council leader Mike Heenan today promised taxpayers the council tax rise will be as low as possible.

His pledge means the Conservative-led council will need to find the cash through cuts in services and increases in charges to claw back the cash. This follows savage cuts last year when the council faced a £2 million shortfall.

It is also likely a small number of jobs will be lost as a result of the cuts but Councillor Heenan said they would "be nowhere near the scale of last year."

According to the latest figures the council's deficit is set to increase year on year for the next five years reaching a total of £2.2 million in 2014 if the council does not act now to reduce the gap. The reality is that taxpayers are likely to face repeated cuts in services and increases in council tax up to 2015 in order for the council to balance its books each year.

Council leader Mike Heenan said the council had received "disastrous" increases in its grant from the Government with the latest set at just 0.5 per cent whilst the council has faced increasing costs and a fall in income.

He said: "I can tell you that as near as possible we have closed that gap and the details will be revealed as we move through the budget process. I cannot give a final decision on the council tax but what I can say is that we are not proposing any significant change to our share of the council tax. It will be kept as low as possible."

Councillor Heenan said the savings would be made across all areas rather than big cuts in one department. He said fees and charges would rise but crucially this would not include parking charges.

He laid the blame for the council's financial crisis at the door of the Labour Government saying: "We came into control in 2003 and since that time we have never had a decent settlement from the Government. It is now a fact of life, we expect it.

"The last two years have been absolutely disastrous and yet the continually pile new responsibilities on to us."

A final decision on the budget process will be made in February.