main content Council tax increase 2008/09

Bromley continues to have one of the lowest Council tax in outer London in 2008/09 and the overall increase in Council tax (including Greater London Authority) is 3.7%.This was despite inflation and other cost pressures and both the current and additional demands on Bromley's services, many of which the Council must provide under statutory duties laid down by Central Government. Examples of additional demands include an ongoing increase in adults with learning difficulties and older people requiring social care. Additional government funding of only 2% was provided which does not meet inflation or the increasing demands on the Council's services with a resultant impact on Council tax pressures.

The Council tax has remained one of the lowest in outer London despite a historically low level of financial support compared with other London boroughs from Central Government. For the sixth year running Bromley has received the minimum increase in government formula grant, which is not sufficient to meet inflation and the major pressures on social services or the additional burdens placed on the local authorities by Government. Taken as a breakdown of formula grant for each person, a resident in Bromley receives £210 compared to £823 for someone living in Newham, which has (for 2007/08) the second lowest Council tax in outer London compared to Bromley. The outer London average is £387 and for inner London the average formula grant per head of population is £744.

The Council has redirected monies according to changing priorities and improved the long term sustainability of the Council's finances. An external inspection of the Council assessed how the Council manages and uses its financial resources. Out of a score of between 1 and 4 the Council received the highest score i.e. an overall score of 4 which indicates strong performance. Despite action taken to improve efficiency, streamline services and improve income generation to help reduce cost pressures it has been necessary to make some difficult decisions on service priorities and local tax levels. The balance between the two is a key consideration every year when setting the Council tax. This balance is a political decision made by our Councillors taking into account all relevant financial and social factors. In addition the overall budget was set only after public consultation, through in depth research and public meetings.

The Council has six "Building a Better Bromley" priorities, which reflect what local people see as important. The priorities are safer communities, a quality environment, vibrant thriving town centres, supporting independence, ensuring all children and young people have opportunities to achieve their potential and an excellent Council.

The Council tax for 2008/09 enables additional funding for schools, support and care of adults with learning difficulties, meeting the additional costs of an increasing number of older people, meeting the increasing costs of waste disposal following an increase in the Government's land fill tax, achieving a more sustainable capital programme and overall improvements to the Council's finances. The Council tax also includes further funding for various other "Building a Better Bromley" initiatives which includes preventative work by youth offending teams and town centre development. At the time of consideration of the budget for 2008/09, Councillors also agreed to allocate existing funds towards increasing resources for community initiatives and to enable additional "street scene" local initiatives. All these initiatives contribute towards meeting the "Building a Better Bromley" priorities of local residents.

The further measures taken in the 2008/09 Budget to stabilise the Council’s capital programme and reduce the ongoing dependency on general reserves to support the revenue budget will enable the Council to focus on more investment for "spend to save initiatives" and provide more capital resources on funding key priorities which includes, for example, leisure facilities in Biggin Hill, a concert hall in the refurbished Langley Boy’s School and investments in works for town centre improvements all contributing towards "Building a Better Bromley".

Your Council tax has two components consisting of the tax for Bromley’s own spending and a "precept" collected on behalf of the Greater London Authority. 

The overall Council tax increase of 3.7% is shown below:

Council Tax at Band D in 2007/08 Council Tax at Band D in 2008/09 Increase Increase
Bromley £913.73 £953.33 £39.60 4.3%
GLA £303.88 £309.82 £5.94 2.0%
Total £1,217.61 £1,263.15 £45.54 3.7%

 

More details are included in the leaflet that accompanies your council tax bill.

Why has the Council Tax gone up?

 

Description Amount
£ ' m

%
increase

Bromley’s 2007/08 budget requirement (excludes funding from the Government’s Formula Grant and the Dedicated Schools Grant) ) 344.2  
Provision for pay and price rises 11.1 3.2
Transfer of various specific government grants to Area based and formula grant (offset by corresponding increase in Formula and Area Based grants below) 15.5 4.4
Eliminate dependency on revenue reserves to support revenue budget to achieve improved financial sustainability for the Council. 3.5
1.0
Increase in Education Spending (excludes pay and price rises) 2.6 0.8
Impact of revised method allocating costs of Freedom Passes in London (concessionary fares) - 1.6
- 0.5
Contribution to capital expenditure 1.0 
0.3
Overall growth in Adults and Community Services (mainly adults and older people services) 1.7
0.5
Increase in cost of landfill tax (waste disposal) 0.8 0.2
Additional income generation from interest earnings (capital receipts etc.) - 0.7 
- 0.2
Various growth initiatives to support Building a Better Bromley (Youth Offending Team and other young people initiatives, planning and town centre development) 0.8
0.2
Outcome of actuarial valuation on employer's overall contribution to pension costs - 0.6
Various other variations -0.6 -0.2
Efficiency savings and other reductions  -3.5 -1.0 
2008/09 Budget before funding from Government (see below) 374.2         8.7
Government's Formula Grant and Area Based Grant -74.1  
Government's Dedicated Schools Grant -173.8  
Bromley's Budget Requirement in 2008/09 126.3
GLA Precept in 2008/09 41.0
 
2008/09 Council tax 167.3   


Notes: The negative figures represent income receivable or a reduction in costs.