Tories plan £172,000 raid on the Council’s reserves to balance the books

Rugby Borough Council will set its Council Tax for the coming year on Tuesday 24 February 2015. Meanwhile the Council's ruling tory group is crafting the proposal they plan to put to the rest of the councillors.

So far all the parties on the Council have agreed that Rugby should accept the Coalition Government's financial incentive to freeze Council Taxes.

This year the Council has to allow for a huge range of gains and losses.

The Council is gaining from:

- An increase in the amount of Business Rates it can keep;

- An increase in the New Homes Bonus it gets from government; and

- The new Leisure Centre running at a surplus.

The Council is losing as a result of:

- An increase in payroll costs of about £200,000 a year;

- An increase in borrowing costs of about £400,000 a year;

- Warwickshire County Council (tory run) de-registering care homes which leaves the borough council with additional costs of £135,000; and

- Planned increase use of emergency bed and breakfast accommodation.

The Council's tax base is expected to rise by about £150,000 with all the new homes being built but the cost of providing extra bin collection rounds is expected to rise by £250,000 leaving the Council with a loss of £100,000.

After allowing for all these swings and roundabouts the plans which the ruling tory group will consider on 5 January 2015 require them to raid the Council's reserves by £172,000 in order to freeze the Council Tax.