News Release

12th November 2003

COUNCIL TAX HIKE IN STAFFORDSHIRE

Michael Fabricant has expressed alarm at a probable major Council Tax hike next year in Staffordshire following a letter that has been written to Deputy Prime Minister John Prescott by the Local Government Association outlining their fears about an £800million funding deficit. "The situation is particularly bad in Staffordshire where we receive a shortfall of funds for education and policing which amounts for a major part of our local council tax bill. Staffordshire receives almost the worst funding for any county in the country. We get a very raw deal indeed from the Government and local residents are likely to feel this in their pocket when Council Tax bills come through next year", says Michael Fabricant.

A national £300m shortfall in education funding, £200m gap for police authorities and £300m needed for social services, the environment and licensing have all been blamed for the funding gap by the Local Government Association. The threat to raise council taxes comes at a sensitive time after ministers signalled they would cap rate hikes, arguing that local authorities have received bumper settlements in recent years.

However Local Government Association chairman Sir Jeremy Beecham said the growth in government funding did not match the additional spending commitments forced onto councils. "Schools, children's and adult social services, traffic management and cleaning up the environment are only some of the many areas where spending has to rise, " Sir Jeremy said. "The problem for this coming year is the perception that council tax levels have already reached the heights of acceptability, but most councils have nowhere else to go to raise income. I hope - in the spirit of co-operation that means the government can agree with us as to the problem - we can find a short-term solution. Unfortunately for now, that solution isn't in local authorities' hands, but in the hands of the government."