Wilmslow Town Council will challenge Cheshire East Council over their proposal to withdraw the Council Tax Support Grant for Town and Parish Councils for the next financial year 2016-17.
Each year Central Government provides a grant for borough councils to compensate them for the fact that they are unable to obtain Council Tax from a proportion of their residents. In previous years a proportion of this grant has been passed on to the town and parish councils, however CEC is proposing in their pre-budget report to cease doing this from 1st April 2016.
The Town Council is funded by two streams, the main one being the precept which is added to resident's Council Tax bill and the Council Tax Support Grant which is much smaller figure but represents 4.5% of their total income, which is effectively money given by central government to borough councils to help them overcome the fact that there are people within the community unable to pay the Council Tax.
Last year a letter was sent to leaders of all the borough councils from the Minister of Local Government suggesting that they continue with that practise and that the town and parish council have a good reason to be given that money.
Matthew Jackson, Town Clerk, confirmed at the meeting that he is aware that quite a number of borough councils have not been passing on any of this grant to town and parish councils, some have been paying a proportion and some have been paying it all. Last year Wilmslow Town Council received just under £10,000 from Cheshire East Council.
Matthew Jackson said "Although the Council Tax Support Grant from government has rationally been cut it has not been to cut to zero yet the proposal which has come forward from Cheshire East clearly suggests that they are basing their budget on not passing any of this grant down to town or parish councils in 2016/17."
Cllr Martin Watkins said "Cheshire East Council decided last year that it was not going to increase its Council Tax for this coming financial year 16/17 although the police and fire precepts go up. So in some ways this is an attempt by Cheshire East to pass on any responsibility for increasing overall the Council Tax and the precept on to town and parish councils."
He added "Sooner or later we are going to have to increase the precept, the question is when. We may be able to absorb this particular increase, the loss of four and a half percent this year, but we need to be aware that we can't go on that way for ever and a day. Sooner or later we are going to have to address it and I would say because this is a handout from Cheshire East we should be objecting that they are trying to take it way."
Cllr Keith Chapman said "If they (Cheshire East) are getting support from Central Government for the fact they cannot collect all their Council Tax in effect what they are doing is taking all of that for themselves and forcing us to put up our part of the Council Tax which doesn't seem fair."
Cllr Martin Watkins read out a letter sent to Council Leaders in February 2015 by Chris Hopkins MP, the Minister for Local Government. In it he wrote "The Government has provided £3.3 billion annually to local authorities for local Council Tax support support schemes, this includes an amount attributable to town and parish councils. The exact amount attributable depends on Council Tax levels
"It would only not be appropriate to pass on any local Council Tax support grant if there no claimants in that parish. As town and parish councils are the tier of local government closest to many communities we recognise the active and important role they play in service provision. Since Council Tax is their principal and in some case their only source of income it is essential they receive all the funds due to them in order to carry out their activities. It is important for all billing authorities to act in a manner which is both fair to town and parish councils and to council tax payers."
Cllr Watkins added "This time last year Cheshire East were saying they are going to support it and pass to parish and town councils the support grant so they were agreeing with what this letter said, now they are saying they are not going to. So what I am suggesting is we go back to Cheshire East and say all the reasons set out in this letter are still valid today."
Keith Chapman suggested they also write to our MP George Osborne. "The government is trying to save money and all councils are having to save money and yet the government is not telling them to save money in this area but to pass it on, so surely we should make sure the Chancellor of the Exchequer is aware."
Cllr David Pincombe said "If they are holding the precept this year and we are forced to put the precept up we're going to look bad in residents eyes and not Cheshire East. I think we've got to fight against that."
Members of Wilmslow Town Council voted unanimously in favour of writing to Cheshire East.
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