Agenda item

Following consideration of the report to this Council on 20 February 2023 and the setting of the Revenue Budget for 2023/24, the Council is required to pass the resolution to set the Council Tax requirement.

Members considered the Council Tax Resolution 2023/24 report presented by Councillor Boden.

Members asked questions, made comments and received responses as follows:

·       Councillor Sutton stated that he also agrees with a council tax reduction as long as it does not put the long-term viability of the Council into jeopardy as has been seen in other places. He added that in terms of costs to residents it does still mean that Fenland is very much adrift compared with other neighbouring authorities. Councillor Sutton stated that residents who live in Black Bear Lane pay £111.37 pence more in Fenland compared to the other half of the road which is in the jurisdiction of Kings Lynn and West Norfolk. He provided the comparison in amounts from the neighbouring authorities and made the point that whilst he welcomes the reduction there is still a long way to go.

·       Councillor Hoy stated that her Council Tax has increased over the last 5 years and will rise. She added that she lives in the lowest Council Tax band and receives a single person discount but there will be some residents who will need to find the extra money in order to make their payments and they may find this a struggle.

·       Councillor Cornwell stated that the Council Tax rates contain £1.9 million for the drainage levies and many large parts of the country do not have that and they get the advantage of something that Fenland does not. He explained that Lincolnshire have £3.4 million of levy payments and Norfolk have £2.8 million, which are significant figures, and, in his opinion, it is time for this to be reviewed and the drainage boards should be advised that the amounts they are charging are to be capped and if they are not happy with that course of action then they can address that with Central Government. Councillor Cornwell expressed the view that the amounts are excessive and whilst support used to be provided by the Government that has now ceased and, in his view, there needs to be pressure applied to the Government to address the issue.

·       Councillor Count stated that he would like to pay tribute to the Leader, members of the Cabinet and officers who have been instrumental in putting the budget together in order to deliver a Council Tax freeze for a number of years and to now bring forward a reduction of 2% and should be highly commended. He added that he knows it is difficult to achieve and that the majority of councils have decided to increase their Council Tax. Councillor Count stated that a comment was made earlier which pointed out that Government funding is primarily one of the main sources of funding and for many years in Cambridgeshire there has been arguments put forward for a fairer funding formula as the formula has been  broken many years and there is the acknowledgement that it is broken, and Cambridgeshire has lost out because of that. He stated that when it is finally implemented it will enable the Council to be able to change the amount that our residents are charged but comparisons should not be made with regards to the amounts that other local authorities charge for their Council Tax without understanding all the facts and figures that go towards those decisions being made. Councillor Count referred to a point made by Councillor Cornwell with regards to the drainage board levies that are imposed on Fenland authorities, pointing out that South Cambridgeshire do not operate any leisure centres with heated swimming pools which is a significant burden. He expressed the opinion the comparisons made are not like for like and, therefore, should not be made and the Council should be proud of the direction that it is taking and the current position that it has arrived at. Councillor Count expressed the view that he would be concerned with regards to capping the drainage boards as there has been much discussion around flooding and Fenland is surrounded by ditches and dykes, and it is due in the main to the drainage boards who keep them clear and running that negate flooding incidents. He added that he does support the point raised with regards to going to Government and asking them to address some of the unfairness imposed on us.

·       Councillor Booth stated with regards to points made with regards to the drainage boards, as a local authority the Council does not have the authority to cap any levies and it would require a Central Government approach which they do not appear to be interested in. He made that point that there had previously been an issue with regards to red diesel and the fact that the drainage boards were going to have to start paying for the supply of it and it was only when a significant amount of pressure from the drainage boards and from the Association of Drainage Authorities (ADA) was applied, the Government reversed the exemption.

·       Councillor Boden made the point that it is very difficult to compare one authority with another and added that the number of properties in Council Tax bands A and B is unusually large especially when comparing it to neighbouring authorities. He added that he agrees with Councillor Sutton that the cost base is too high and when the medium to long term position is looked at when considering the two transformation agendas that the Council has, it will need to be looked at carefully and reacted to accordingly and he will be happy to discuss this further going forwards with Councillor Sutton. Councillor Boden referred to the comments made by Councillor Cornwell with regards to the drainage levies and the figure of £1.9 million represents 25% of the Council Tax that the Council receives and in South Holland jurisdiction that figure is 50%. He added that there are around 20 to 25 authorities around the country who have a significant problem when it comes to drainage levies and, therefore, the issue has not received the amount of attention that it deserves, despite the amount of pressure that has been put forward to MP’s and to Government. Councillor Boden added that the Secretary of State produces a settlement letter each year to all local authorities, which advises them what money that they can expect to receive each year and includes a resume of what changes can be expected, with the letter being received by this Council at the start of February and it does mention that the Government is aware that there is an unfairness to some local authorities in the increase in drainage levies which have been imposed on them and that Government is looking to address that issue before the end of March 2023. He expressed the view that he is hopeful, therefore, that the Council is going to receive some money in this financial year in relation to monies that are spent on the drainage boards. Councillor Boden stated that Councillor Booth is correct when he explains that the Council cannot impose a cap on the drainage boards but the way in which they account for their expenditure is not an up to date system and, in his opinion, there are a significant amount of changes that the drainage boards can make, with the Council being in a strong position to influence them due to the number of members of local authorities who are members of each drainage board.

Proposed by Councillor Boden, seconded by Councillor Booth and AGREED theresolution set outin the report for the Council Tax requirement be approved.

The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 imposean obligation on Local Authorities (after 25 February 2014) to record all votes on decisionson budget and Council Tax,with thisin mind Membersvoted onthis itemas follows:

In Favour: Councillors Benney, Mrs Bligh, Boden, Booth, John Clark, Sam Clark, Connor, Cornwell, Count, Mrs Davis, Divine, Kim French, Hay, Hoy, Humphrey, Mrs Laws, Lynn, Mason, Meekins, Miscandlon, Mockett, Murphy, Patrick, Purser, Seaton, Skoulding, Sutton, Tierney, Wallwork and Wicks.

Against: None

Abstentions: None

(Councillor Yeulett left the meeting at 6.10pm and was not present when the recorded vote for this item took place and for the remaining agenda items)

(Councillor Wicks left the meeting at 6.17pm after this item and for the remaining agenda items)