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Council tax increase 2010/11
Bromley continues to have one of the lowest council tax in outer London in 2010/11 and the overall increase in council tax (including Greater London Authority) is 0.9%. which is the lowest rise since the council tax was introduced in 1993/94. This was despite higher levels of inflation, increasing demand for some of our services particularly during the current recessionary period and other cost pressures. Many of these services must be provided under statutory duties laid down by central government. Examples of additional demands include an ongoing increase in adults with learning difficulties and physical disabilities, protecting vulnerable young people and increasing costs of landfill tax. The latest published inflation data in mid February shows an annual increase of 3.5% in the consumer price index (government's normal measure of inflation). Additional government formula grant of only 1.5% was provided which does not meet the combined impact of inflation and 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 2010/11 the Council's "Band D" council tax is £1,301.13 which compares with an outer London average of £1,433.29. Details of the individual council tax bandings are shown below:
Council Tax Banding |
Bromley (incl. GLA) £ |
Outer London Average £ |
Difference £ |
| A |
867.42 |
955.53 |
88.11 (10%) |
| B |
1,011.99 |
1,114.78 |
102.79 (10%) |
| C |
1,156.56 |
1,274.03 |
117.47 (10%) |
| D |
1,301.13 |
1,433.29 |
132.16 (10%) |
| E |
1,590.27 |
1,751.80 |
161.53 (10%) |
| F |
1,879.41 |
2,070.31 |
190.90 (10%) |
| G |
2,168.55 |
2,388.82 |
220.27 (10%) |
| H |
2,602.26 |
2,866.58 |
264.32 (10%) |
For the eighth 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 local authorities by Government. Taken as a breakdown of formula grant for each person, a resident in Bromley receives £216 compared to £868 for someone living in Newham, which has (for 2010/11) the lowest council tax in outer London compared with Bromley who has the second lowest. The outer London average formula grant is £402 and for inner London the average per head of population is £757.
Bromley is unique as a London borough in having lower than average council tax levels combined with lower than average formula grant levels. Other boroughs with a low formula grant have substantially higher council tax levels and conversley other boroughs with a low council tax have substantially higher formula grant levels.
The Council has redirected monies according to changing priorities and maintained the long term sustainability of the Council's finances. An external inspection of the Council assessed how the Council manages its finances and concluded that the Council "performs well". 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, research and public meetings.
The Council has a sustainable community strategy for improving the quality of life in the Borough known as "Building a Better Bromley - 2020 Vision" . The 6 priorities, which reflect what local people see as important, 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 2010/11 Budget enables the Council to maintain sustainable finances to support these local priorities.
The council tax for 2010/11 provides additional funding for schools, support and care of adults with learning difficulties and physical disabilities, greater protection for vulnerable young people and meeting the increasing costs of waste disposal following an increase in the Government's landfill tax. The council tax also includes further funding for various initiatives including, for example, the running costs of new leisure facilities at Biggin Hill. At the time of consideration of the budget for 2010/11, Councillors also agreed to divert existing funds towards increasing resources to address residents' priorities such as environmental initiatives, measures to deal with the problems created by adverse winter conditions and further investment in the voluntary sector to support the community. All these initiatives contribute towards meeting the "Building a Better Bromley" priorities.
Measures taken in the 2010/11 Budget help ensure the continuing stability of the Council's capital programme as well as prevent any dependency on general reserves to ensure that the Council can focus on more investment for "spend to save initiatives" and provide more capital resources on funding key priorities which includes, for example, building a new library and leisure complex in Biggin Hill, a concert hall in the refurbished Langley Boy’s School and investments in works for town centre improvements (e.g. Orpington High Street and library) 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 0.9% shown below consists of a 'Bromley element' increase of 1.2% and a nil increase in the GLA precept.
| Property |
Council Tax at Band in 2009/10 |
Council Tax at Band in 2010/11 |
Increase (0.9%) |
| Band 'A' |
£859.32 |
£867.42 |
£8.10 |
| Band 'B' |
£1,002.54 |
£1,011.99 |
£9.45 |
| Band 'C' |
£1,145.76 |
£1,156.56 |
£10.80 |
| Band 'D' |
£1,288.98 |
£1.301.13 |
£12.15 |
| Band 'E' |
£1,575.42 |
£1,590.27 |
£14.85 |
| Band 'F' |
£1,861.86 |
£1,879.41 |
£17.55 |
| Band 'G' |
£2,148.30 |
£2,168.55 |
£20.25 |
| Band 'H' |
£2,577.96 |
£2,602.26 |
£24.30 |
More details are included in the leaflet that accompanies your council tax bill.
Why has the council tax gone up?
| Description |
Amount £ ' m |
| Bromley’s 2009/10 budget requirement (excludes funding from the Government’s Formula Grant and Area Based Grant, and the Dedicated Schools Grant) |
385.0 |
| Provision for pay and price rises |
6.7 |
| Increase in Education spending (excludes pay and price rises) |
3.9 |
| Variation in interest earnings (capital receipts etc.) |
1.5 |
| Transfer of various specific government grants to Area Based and Formula Grant (offset by corresponding increase in Formula and Area Based grants below) |
5.3
|
| Adults with Learning Difficulties |
1.3
|
| Waste |
0.6
|
| Other real changes |
2.9 |
| Final settlement for freedom passes to reflect revised apportionment of costs |
1.2
|
| Efficiency savings and other reductions |
-7.7 |
| 2010/11 Budget before funding from Government (see below) |
400.7 |
| Government's Formula Grant and Area Based Grant |
-82.1 |
| Government's Dedicated Schools Grant |
-186.9 |
| Bromley's Budget Requirement in 2010/11 |
131.7 |
| GLA Precept in 2010/11 |
41.1
|
| 2010/11 Council tax |
172.8 |
The negative figures represent income receivable or a reduction in costs.