Douglas Rates Could Rise Due To Relentless Rise In Govt Costs
Douglas Borough Council is warning rates could go up due to the ‘relentless rise’ in costs imposed by central government.
Local authorities will have to pay more in employer’s national insurance contributions next year, after a Treasury directive ending the contracting-out of the state second pension.
The changes will increase the pressure on budgets according to Council Leader David Christian, who estimates there could be an extra budren of £200,000 on rates.
Douglas Council is starting its budget setting process for the year 2019-2020 and had asked Treasury for compensation to counter the pension change, but was rejected.
Mr Christian says ‘once again local authorities are being forced to comply, with no consultation, with excessive demands from government’.
He also points to the impact of a pay award settlement imposed on local authorities by the Public Service Commission, and increases in tipping charges at the Energy from Waste plant as extra financial pressures.
The Council Leader admits the rate-setting process will be ‘challenging’ ahead of next year.
‘We must identify how best to deal with this latest raft of financial impositions, without diminishing our ambition to manage public demand for and expectation of Council services’.
Ewan Gawne - Local Democracy Reporter