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Poole's Funding Settlement

The amount of Council Tax to be paid in Poole next year became clearer today with the announcement from government regarding the levels of funding provided to the Borough for 2007/08.

The difference between the Council's spending plans and the amount of government grant received leads to the level of Council Tax, which will be set in February next year.  Local Government Minister, Phil Woolas, indicated that expected Council Tax rises across all authorities next year should be below 5%, based upon an average national increase in grant of 3.7%. 

Poole Council, as anticipated, has done less well than other authorities receiving the lowest increase in grant of only 2.7%, compared to the unitary council average increase of 4.1%.  Despite this disappointment, the Leader of the Council, Cllr Brian Leverett, hopes to deliver a rise in Council Tax of less than 5% next year.

Cllr Brian Leverett, Leader of the Council, said: "Although Poole is already at the bottom of the funding league we have yet again been given a below average settlement, resulting in a widening of the gap between those poorest funded and those fairly funded by government.  This is totally unacceptable for the people of Poole and will impact the Council Tax. In order to contain any increase, the Council will have to make further efficiencies and savings but we remain determined to protect basic services."

The announcement identifies £23.209M that the Government is prepared to contribute to providing services (excluding schools) in Poole in the next financial year. This is an increase of just £0.600M. 

On a per person basis Poole is now the fourth lowest-funded Unitary Authority in the country.  The people of Leicester, Middlesborough and Nottingham for example receive three times as much as Poole to provide basic services, yet the vast majority of costs to fund the services are identical.

Cllr Leverett continued: "Sadly, this is no surprise to us this year.  However we are not giving up the fight for a fairer deal for Poole.  With land prices amongst the highest in the country, an above average and rising elderly population we are faced with additional challenges on our budget.  Each year the Council has visited and campaigned to the Government to consider Poole's case and, whilst we have been listened to, virtually nothing has been done to improve the plight of Poole's hard-pressed council Taxpayers."

Between 2003-4 and 2007-8 Poole, already one of the lowest funded authorities, received a rise of only £18.66 per person, whilst the average rise per person for all Unitary Authorities is £63.35.

Ruth Lawson, Communications Manager, Borough of Poole, tel: 01202 633295