Parish Spending to be brought under control?

The Coalition Government has issued a consultation document on “Local referendums to veto excessive council tax increases”. The introduction states:

Band D council tax has more than doubled since 1997-98 and high increases in the past have led to various measures designed to constrain local discretion, including council tax capping. Often these measures appeared to be based on the presumption that Government ministers and their civil servants knew better than local communities what was in their best interest. The Coalition Government is determined to reverse this presumption and to rebalance the role of the central state and local communities. This will see the Government playing a much smaller role, with powers and responsibilities being devolved to the most appropriate level, wherever possible empowering local people so that they have a direct say in important decisions that affect their lives. In relation to council tax, this means abolishing capping and giving local people a stronger role in determining annual increases. The Government intends to introduce legislation to achieve this at the earliest opportunity.

The control of excessive parish council precepts, which the Henley-in-Arden Reform Association has been advocating, has been included. In 2009/10, our Joint Parish Council increased the Parish Precept (Band F) by 37.6%.

Parish precepts 

There has been a growing awareness in recent years of the council tax increases set by local precepting authorities, and of the very high precept increases set by some town and parish councils in particular. Increases in council tax revenue from town and parish councils have outstripped those for England in each of the last five years. The average town and parish precept set in some billing authorities (around £100) is larger than that of the smallest shire district of Breckland (£68). It is right that local precepting authorities should have the resources they need to support neighbourhoods and local communities. However it is also right that council taxpayers are protected from excessive increases.

 In fact, it is the very first question to be asked in the consultation.

Question 1.

Do you agree that local precepting authorities, such as town and parish councils, should be included within the provisions for council tax referendums? If so,

• are there details about the budget setting process for local precepting authorities which need to be taken into account?

• will the ‘double lock’ mechanism work to protect the majority of town and parish councils.

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Observations on the consultation document

Our Joint Parish Council, which sets the parish precept (parish council tax), will discuss this proposed curtailment of their spending powers at their next meeting on 25th August. The Reform Association will be making a response to the Government's consultation, welcoming the cap on parish councils, which the Reform Association has been advocating to local MPs. The Association believes that the JPC should spend more money on supporting local voluntary organisations and £20,000 less on unnecessary admin and propaganda.

Clearly the Joint Parish Council will need to be mindful of this and seek to reverse the large increases that have taken place over the previous years

Henley NEWS Online asked Bob Ayling, a very experienced business manager and resident of Henley, to comment on the Government's proposals and he reports:

• 
  I would like to see the proposal extended to include referendums on whether the precept is excessive – not just on whether the increase is excessive. Ultimately the real value in a ‘Big Society’ comes down to whether the residents consider the local taxes  deliver value for money.
• The double lock mechanism appears to be contrary to the principle of putting the power with the residents – small values should not be outside of a democracy.

As a starter towards a ‘Big Society’ this seems to be a useful first step.  It would be an even bigger step if my observations were enacted too.  To truly bring about a ‘Big Society’ the people need to see that they have real power to influence local politics.  Councillors are elected to represent the residents not to become an oligarchy for its own ends.

Bob Ayling - Reform Association