by Rebecca Hannant
Residents across the East Riding could see a 4.99 per cent rise in council tax from April if proposals are approved by councillors next month.
The potential increase follows last week’s announcement that East Riding Council is set to lose £32.2 million from its annual settlement funding over a three-year period under the Government’s Fair Funding Review.
The council is considering a 4.99 per cent rise to help offset the loss, which is the maximum increase permitted without triggering a local referendum.
The recommendation was presented to East Riding Council’s cabinet on January 27 and will be voted on at the full council budget meeting on February 5.
However, the proposed rise has prompted criticism from local representatives, who say it would place further strain on residents already facing rising costs. It is estimated that some households could see council tax bills increase by at least £200 a year, with those in band D paying around £300 more annually.
South East Holderness councillor and Reform UK group leader Jon Dimberline said he did not believe council tax should be increased.
He said: “At a time when people are struggling, the council tax shouldn’t just be a ‘one-stop shop’ for extra income every time a council is low on funding or has over-expended. How refreshing would it be if a council told its residents: ‘Your tax isn’t going up this year,’ or even better, ‘We’re actually bringing it down.’
“To me, inflation feels like a manufactured cycle designed to demand more money year after year. The choice of 4.99 per cent says a lot about the mindset of those in charge. They set it there because it doesn’t sound quite as bad as five per cent.
“The other thing to consider is that this is a difficult decision for them to make. It’s easy for me, or anyone else, to say ‘don’t raise taxes,’ but we need to ask why it has to go up. Is it because the Government is pulling funding? Is it because money is being wasted? We must look for ways to avoid yearly increases. We should be looking for ways to reduce tax through sheer efficiency.
“A council should be run like a business. Sometimes these organisations become such big animals that efficiency is lost; that’s exactly why they need more scrutiny.”
Local MPs have also raised concerns, including Beverley and Holderness MP Graham Stuart.
He said: “Families across the East Riding are being hit with a £200 tax bombshell. The Government talks about more money and certainty, but the reality is that the settlement only works if council tax goes up by nearly five per cent every year.
“People were told there would be no new taxes on working families. Instead, households are paying more while services are squeezed. This is people paying more and getting less, and it is the direct result of government policy.
“I am working with the council and other East Yorkshire MPs to challenge the settlement, push for a fairer deal for rural areas, and make clear that families should not be forced to pay more because of decisions taken in Whitehall.”
Bridlington and the Wolds Conservative MP Charlie Dewhirst said the increase reflected wider pressures on local authority finances.
“Nobody wants to see their council tax go up by nearly five per cent, but it’s a reflection on the current state of local authority finances,” he said.
“This is largely a result of the £30 million cut to East Riding’s budget in Labour’s Local Government Finance Settlement, which means the council is not receiving anywhere near the funding it needs to continue serving local people.
“A huge percentage of East Riding’s budget goes into children’s and adults’ social care – including helping children with special educational needs and disabilities and their families, for which the East Riding receives the lowest amount of funding in the entire country – alongside increasing financial pressures from health and social care and inflation.
“While it is uncomfortable for residents, it is no surprise that the council requires more money to continue to operate effectively as a result of choices made by the Labour Government.”
Council leader Anne Handley said the proposed increase was unavoidable because of the loss of Government funding.
She said: “We are very disappointed with the Fair Funding settlement and have serious concerns about the implications. We are working hard, along with our local MPs, to fight for a better and fairer deal for our residents.
“We are strongly focused on taking action to address the huge financial challenges and ever-rising demand for services that all councils currently face, through transforming how we work and operating a leaner, smarter council.
“However, with ever-shrinking budgets from government, we unfortunately cannot deliver services for residents without increasing council tax.”
Liberal Democrat leader Denis Healy also criticised the proposals.
He said: “The Labour Government is depriving East Riding residents of over £32 million of vital service funding every year over the next three years and, by doing so, is forcing the council to implement the maximum council tax increase of 4.99 per cent.
“The Government’s unfair funding formula penalises the East Riding for being rural, coastal and relatively affluent in comparison to more urban Labour areas.
“The council is being given less, while residents are being asked for more. Meanwhile, East Riding’s four Labour councillors all voted to support the Labour government in a recent council motion while ignoring the plight of their own council and residents.”
The Gazette has approached the Independent Group, Labour and Green Party for comment.