By Andy Mitchell, Local Democracy Reporter
SENIOR district councillors in Stratford this week expressed concerns over the impact of the new government’s budget – including “very alarming” speculation on council tax hikes.
The talk turned to the national agenda during a number of matters discussed at a meeting of the cabinet with deputy leader Cllr George Cowcher (Lib Dem, Wellesbourne South) highlighting the need to “keep a very close eye on” rates of unemployment in light of the rise in national insurance for employers.
Leader of the opposition Councillor Sarah Whalley-Hoggins (Con, Brailes & Compton) went further, querying the council’s spending before suggesting the political rumour mill had spat out the potential for more problems to solve by the end of the year.
The government has announced that the rate of national insurance that employers pay will go up by 1.2 per cent to 15 per cent, also lowering the earnings threshold at which they must start paying to £5,000 from £9,100.
While workers are not paying more, critics have noted how this could lead to lower wages and potential job cuts as businesses look to soften the blow.
Cllr Cowcher brought the matter into the discussion of the council’s risk register.
“The national insurance rise is probably going to lead to a rise in unemployment and I think we need to monitor that very, very closely to ensure we are taking that on board,” he said.
While a rise in unemployment is not directly referenced in the risk report, the council’s measures to mitigate risks related to cost of living pressures are.
They include various financial support schemes, including help for foodbanks, training for council staff to signpost residents and businesses to support available, “breathing space” applications to support council tax payers with payment plans, included increased use of discounts to assist in hardship cases, plus customer services staff encouraging the take up of benefits where appropriate.
Cllr Whalley-Hoggins referenced speculation that councils may be given scope to increase council tax by more than the current maximum – 2.99 per cent with an extra two per cent for Warwickshire County Council to cover the costs of adult social care.
The “potential for higher council tax increases” is listed among Stratford District Council’s actions to counter financial risks.
“My questions are around the transparency of what has been spent thus far because that gives the public a view of the value for money that they are getting for the council tax they are paying,” said Cllr Whalley-Hoggins in response to the council’s capital spending.
“I’m also seeking a bit more understanding of the budgets and reserves that we have, whether the resources are going to help us to act nimbly on behalf of our residents who are being increasingly cash strapped.
“I know that the (national) budget we received last week is only half the story. When we get the settlement figures shortly (funding that councils receive from government), that may be another tranche of matters to be sorted out, for example the percentage increases in council tax that will be permitted.
“It is about how you are going to report that back to us and the implications on the (council) budget for all of us, the spending for residents. The things I am hearing are very alarming, I’ll just leave it at that at this stage.”
