Council forced into corner on tax hike
Reporter: Andrew Rudkin at Oldham Cabinet
Date published: 19 February 2013
OLDHAM Council leader Jim McMahon revealed the alternative to not increasing council tax in April would have been far worse.
The council is set raise council tax by 3.5 per cent next Wednesday, putting 60p a week on the tax for Band A properties and up to 90p a week on Band D homes.
Councillor McMahon said: “If we don’t take it from council tax we would have to take it from somewhere else and the alternative is much, much worse.
“When you look at the impact on the front line and compare it to authorities not a million miles away where libraries are being closed and Sure Start centres being looked at, actually Oldham has been balanced in a fair and equitable way.”
He added: “We’ve managed very well so far, but if the Government keeps coming to us asking us to make more and more savings with cynical and technical changes halfway through the year, it’s going to get more and more difficult to prepare front line services.
“The challenge ahead is not just about balancing the budget, it’s about how we protect Oldham as well.”
Councillor Abdul Jabbar, council’s finance chief, said last week further cuts of between £38 million and £40 million were “probable” over the next two years, and said the council had been “forced into a corner” over the proposed 3.5 per cent council tax hike.