Fears over council tax hike

FEARS of an inflation-busting council tax rise of up to 5 per cent have been expressed by the Local Government Association (LGA).

It said it would not be surprised by an average increase during 2009 of between three-and-a-half to the cap of 5 per cent.

But Oldham Council leader Howard Sykes is sticking by the pledge to keep any council tax increases to 2 per cent at the most.

The LGA prediction comes as councils experience a sharp fall in revenue from services such as parking and leisure centres. But it also predicts that councils will benefit from the recent interest rate falls.

Councillor Sykes said he was aware of a fall in income from some services, but said that had been catered for in the budget.

He said: “We will stick to a 1.9 per cent increase for Oldham, with a 2.5 per cent total increase, depending on precepts and levies by other agencies which have not yet been set.”