Closing the gap

COUNCIL tax increases will be kept at 2.5 per cent this year — despite authority chiefs having to plug a £20 million shortfall, according to Oldham’s Liberal Democrat council leaders.

The announcement means a bill for a Band D house would be £1,514 from April, which equates to a Band A tax of £1,009 and £1,177 for a Band B property.

Figures assume fire and police precepts do not increase by more than predicted and do not include parish levies.

Oldham Council says it will reduce management, streamline administration, introduce more efficient ways of working and generate more income.

However, in response to public concerns, an all-party committee is reconsidering four cuts, including closing Highbarn Day Centre in Royton — as highlighted in the Chronicle yesterday. Cuts to library services, youth clubs and school crossing patrols have also been earmarked.

Predicted job losses have already been outlined. A total of 488 posts are expected to go in 2009/10 and a further 56 between 2010 and 2012.

Councillor Lynne Thompson, Cabinet member for finance and resources, said: “We can now close a budget gap of £20 million.

“We also have a clear and prudent plan for the budget which takes us to 2012 and includes having a proper provision to meet emergencies.

“Protecting front-line services and handling job reductions sensitively has been our top priority.

“It will also help the council meet its promise to keep council tax increases at — or below — inflation, with a proposed increase of 2.5 per cent. This is also below this year’s average predicted increase for councils across England and Wales.”

Councillor Thompson said that less than £1 million of the £20 million savings was likely to impact on services.

She added: “We are optimistic that we can avoid service reductions. However, the reality is that we always need to find better and more efficient ways of delivering to our residents. This has never been truer than in the current financial climate.”

Council reserves have also been doubled to £12.7 million for 2009/10 after criticism from the Audit Commission.

Councillor Kay Knox, Cabinet member for children, young people and families, said: “This is going to put Oldham on a much firmer footing for the future.”

Council leader Howard Sykes said it was the biggest budget gap he could remember in more than 20 years on the council.

A final decision on the budget and council tax will be made on February 25.