Government reluctance to help Kent County Council pay a £7 million-plus bill for asylum seekers could mean an extra hike in council tax bills.
Tory-run County Hall wants to increase April’s levy by 1.86 per cent but is currently budgeting for an additional 0.71 per cent hike for asylum costs – a total rise of 2.57 per cent.
That would mean an additional 50p a week for residents living in Band D properties, increasing an annual bill of £1,026 to £1,053.
KCC says the Government has yet to make it clear if the Home Office will cough up, but council leader Cllr Paul Carter revealed he was in direct discussions with the borders and immigration minister Phil Woolas over the matter.
He said: “Asylum is a national issue and we believe it is morally right that these costs are met nationally and not by Kent.
“It’s a thorny subject and I’m hoping that between now and February 18 (the date the tax increase will be agreed) we will have a resolution because it’s quite unfair for this cost or any asylum costs to fall on local government.
“It’s a Home Office responsibility and they should meet the tab. If not then we will have no option but to put a separate precept of 0.71 per cent on the council tax increase to meet those extra costs.”
Should the Government agree to pay back the cash, the proposed council tax rise of 1.86 per cent will be the lowest since the charge was first introduced back in 1993.
If not, it will be 0.13 per cent higher than the 2.44 per cent increase agreed last year.
However, KCC Labour leader Leslie Christie described Cllr Carter’s asylum claims as “totally misleading”.
He added: “The Government is paying for the asylum service provided the claims are backed by proper documentation.
“No government of whatever political persuasion will hand out taxpayers’ money without full verification.
“If the Tory administration cannot provide what is needed then the fault lies more with them than with the Labour government.”
UK Border Agency chief executive Lin Homer said she did not recognise the £7m figure quoted by Cllr Carter, adding that the agency had been in discussions with KCC and other local authorities about covering the asylum costs.
She said: “We believe we have made Kent a very fair offer – including a substantial increase in the funding provided in previous years – and are awaiting a response.”
The council tax increase was revealed as part of KCC’s budget announcement on Tuesday.
The authority’s largest planned spending increase for the next financial year is an extra £12m on highways maintenance, with a further £6.5m for adult social care and £5.8m to increase entitlement to early education places.
There will also be an additional £4m for children’s social services to help cope with the increased number of referrals sparked by the Baby Peter tragedy.
Cllr Carter also revealed that KCC staff would be asked to accept a pay freeze to help the authority cope with an estimated £200m funding shortfall over the next three years.
Some 600-700 jobs will be cut at County Hall over that period.
Last year’s offer of a one per cent pay increase caused some union members to take industrial action, but Cllr Carter was confident there would be no such repeat this year.
He said: “Unison have so far been very responsible and haven’t called for a ballot so far. But a 0 per cent increase is the sensible way forward and I hope the staff will understand that.
“Hopefully, they will show their maturity and recognise it is necessary to help keep council tax down for the residents who, like them, are feeling the massive effects of the global recession.”
Kent Lib Dem leader Cllr Trudy Dean said her party would be examining the detail of the budget to ensure there was no more “continuing waste” like the controversial Kent TV and Healthwatch schemes.
She added: “Last spring KCC was criticised by the Audit Commission for being careless with £50m of taxpayers’ money in Icelandic banks, and in July they awarded councillors an eight per cent increase in allowances while limiting staff to one per cent.
“In the last month residents have been infuriated by KCC’s failure to clear roads and pavements of snow and ice.
“They will have to work very hard indeed to convince any taxpayer that there should be any increase in council tax next year at all.”
POSTED: 10/01/2010 16:00:00
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