Council Tax Your Guide for 2018-19 - Reading Borough Council
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Council Tax Your Guide for 2018-19
Cllr Jo Lovelock
Reading Borough Council
Civic Offices
Bridge Street
READING
RG1 2LU
Leader of the Council
Tel: 0118 937 3787
My Ref: jl/ka
Council Tax Bill 2018/19
Dear Resident
As is the case with all local Councils, Reading Borough Council continues to face a
challenging budget position in the face of unprecedented cuts in funding from Central
Government. That funding will have been cut by nearly £58 million between 2010 and
2020. It is likely to be removed entirely by 2020 and there remains little clarity on how
the Government intends to fund local Councils beyond that point.
Nationally Local Government Leaders from all the political parties have been asking the
Government to provide adequate funding for Councils who have the legal duty to care
for vulnerable elderly and disabled residents and children at risk of harm. In Reading’s
case we need an extra £10million to do this as more and more adults and children are in
need of help.
This year the Government’s response has been to give Councils permission for a 5.99%
Council Tax increase. That is not a decision Councillors take lightly, especially at a time
when we know household budgets are stretched.
Even a 5.99% increase only raises an extra £4.9million – less than half the amount
needed for those care services. That doesn’t take account of other inflationary costs.
In response, we continue to have to make difficult decisions to balance the budget. We
are reluctantly proposing to reduce library opening hours again, but are managing to
keep all Reading’s libraries open for part of the week, unlike some Councils. Some fees
and charges, such as parking, are being increased. We have the temporary pool at
Rivermead while we find a partner to fund replacement pools at Palmer Park and for
Central Pool.
Councillors’ Secretary, Reading Borough Council, Civic Offices, Bridge Street Reading, RG1 2LU 0118 937 2287/2288
Reading has been included in the Berkshire Business Rate pilot for 2018/19. This pilot is for one year only. However we are doing all we can, working with the other Berkshire Councils, to urge the Government to extend the scheme further. Reading Borough Council has a very strong track record of working with partners and successfully bidding for external funding opportunities. While this money cannot be used for day to day services or to balance the budget, it allows us to continue to invest in Reading, even at this difficult time. This summer the historic Reading Abbey will open to the public following restoration, creating a major new tourist and visitor destination. Also this summer, the improved Cow Lane will open with two-way traffic and buses under the new bridge for the first time ever. We have successfully bid for money for the new Green Park Station, set to open next year. The Council also continues to invest in helping to tackle some of the key issues facing Reading. The lack of affordable housing remains a major issue across the south east. We are building new Council housing at Conwy Close, with more planned in the future. Homes for Reading - the Council’s housing company – is purchasing properties. Eventually the rent from the initial properties will be used to subsidise homes being let at below market rent for those who cannot afford higher rents. We are investing in key new sustainable transport infrastructure, like bus priority corridors already in operation along the A33, and a key new pedestrian, cycle and bus only route proposed for east Reading. The Council-owned bus company goes from strength to strength, with 1 million more trips last year. There also remains a high demand for new school places. We have created 2,520 additional primary school places. We are planning a new secondary school to take account of the increase in the number of older children. I know that a Council Tax rise is never welcome, particularly at this time, but I hope this letter goes some way to explaining why an increase is needed. I also hope it helps to give you an overview of some of the other things the Council is doing to help address the important issues in Reading. Yours sincerely Councillor Jo Lovelock Leader, Reading Borough Council Councillors’ Secretary, Reading Borough Council, Civic Offices, Bridge Street Reading, RG1 2LU 0118 937 2287/2288
Financing Reading Borough Council
Where does our funding come from? Funding Reading Borough
Council 2018-19
Funding to provide services is made up of four Collection
Section 31
Fund
areas: Council Tax, Business Rates, Surplus 3% Grant 3%
Business
Government grants such as Section 31 grant Rates 34%
and Public Health grant and income from fees,
charges and rents. In 2018-19 the Council will
benefit from being part of the Berkshire
Business Rates Pilot and will retain an extra
£5.3m in business rates in 2018/19, after the
loss of £6.2m Revenue Support Grant and
other grants.
Council Tax
62%
Reading Borough Council’s Budget 2018-19
How do we spend the money?
How every £1 budget is spent
30p pays for Childrens,
Education & Early Help Reading Borough Council’s budget at the
Service start of 2018-19 is £142.9 Million.
27p pays for Adult Care &
Health Care Services
The diagram on the left shows how the
17p pays for Environment budget will be spent to deliver all the
& Neighbourhood Services council’s services in 2018-19.
9p pays for Corporate
Support Services The table below outlines the forecast
budget requirement over the next 3 years.
17p pays for Other areas
including capital financing
and contingency
22018-21 Financial Forecast
2017/18 2018/19 2019/20
£'000 £'000 £'000
Budget Requirement (previous year): 125,327 142,891 126,709
One off measures from previous year 4,531 0 0
Contribution to the LEP 6,250 -6,250
Equalisation Reserve 3,275 -3,708 -1,994
Additional to General Fund Balances 2,500 -2,500
Grant (& Levy) Changes 79 -226 1,625
2,848 3,131 3,495
Pay Award and Increment (& Pension
change)
Non pay inflation 2,497 2,600 2,670
Capital financing cost 1,300 2,400 1,200
Service Pressures 10,381 3,735 2,394
Recharge of GF to HRA -1,000
Contingency - LAC Placements 2,000
Contingency - Children's Company -1,000
Other Corporate Budget Changes -24 287 50
Draft Budget before Savings 159,964 141,360 136,150
Savings measures agreed July 2017 -11,449 -7,420 0
Savings measures agreed Jan 2018 -2,973 -4,377 -3,253
Savings measures agreed Feb 2018 -3,651 -3,854 -4,396
Addition to General Contingency 1,000 1,000 0
Budget Requirement 142,891 126,709 128,501
3Council Tax Values for 2018-19
How much is your bill?
Your Council Tax Bill is based upon the value of your property. The council tax for each
valuation band is calculated as a proportion of Band D.
Your Council Tax Bill helps to pay for all services delivered by Reading Borough Council,
Thames Valley Police Authority and the Royal Berkshire Fire & Rescue Service.
The table below shows the council tax at each band and the contribution to each budget.
Royal
Reading Berkshire Fire
Borough PCC for & Rescue
Council Thames Valley Service Total
£ £ £ £
A 1,053.33 121.52 42.90 1,217.75
B 1,228.88 141.77 50.05 1,420.70
C 1,404.44 162.03 57.21 1,623.68
D 1,579.99 182.28 64.36 1,826.63
E 1,931.10 222.79 78.66 2,232.55
F 2,282.21 263.29 92.96 2,638.46
G 2,633.32 303.80 107.26 3,044.38
H 3,159.98 364.56 128.72 3,653.26
4Funding for Adult Social Care
Adult Social Care Precept
The Secretary of State for Communities and Local Government has made an offer to adult
social care authorities. (“Adult social care authorities” are local authorities which have
functions under Part 1 of the Care Act 2014, namely county councils in England, district
councils for an area in England for which there is no county council, London borough
councils, the Common Council of the City of London and the Council of the Isles of Scilly.)
The offer is the option of an adult social care authority being able to charge an additional
“precept” on its council tax for financial years from the financial year beginning in 2016
without holding a referendum, to assist the authority in meeting expenditure on adult
social care. Subject to the annual approval of the House of Commons, the Secretary of
State intends to offer the option of charging this “precept” at an appropriate level in each
financial year up to and including the financial year 2019-20.
In relation to the financial year beginning in 2018 the Secretary of State has determined
(and the House of Commons has approved) a referendum principle of six percent
(comprising three percent for expenditure on adult social care and three percent for other
expenditure), for adult social care authorities. These authorities may therefore set council
tax up to this percentage in 2018 without holding a referendum.
Reading Borough Council has chosen to charge the additional 3% precept in 2018-19 which
will be directly invested in providing social care. This is in addition to the 2.99% increase in
council tax and means the overall increase in bills this year will be 5.99% - the maximum
allowed without holding a referendum.
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