Second year council tax cut in Royal Borough

For the second year in succession Royal Borough residents are set to benefit from even lower council tax with a further cut of 0.5%.

On top of the 4% reduction in 2010/11 this means local people will continue to pay the lowest Band D council tax in the country outside London - and benefit from a 12% real terms reduction since 2007.

The proposed reduction has been achieved with no cuts to front line services, thanks to the council's approach to leaner, smarter working which resulted in more than £9m of savings over the past year.

Cllr Richard Kellaway, Cabinet Member for Finance, said: "This is very good news for residents. We are trying to help them as much as we can at a time of high inflation and pressures on everyone's pockets. Our approach is to find better ways of working rather than making cuts to services and we are delighted that this 0.5% reduction will mean that residents will pay less than they did four years ago."

Cllr David Burbage, Council Leader, said: "Our long-term plans for changing the way the council works to increase efficiency means we make every penny count in all areas. There is now a culture throughout the council that sees staff actively looking for and introducing better ways of doing their jobs so that residents benefit. This means the organisation is leaner and fitter than ever and we are recognised nationally as a council that not only puts residents first but achieves quality - and sometimes very innovative - services on their behalf."

Cllr Burbage said that regrettably, like councils across the country, the Royal Borough could not achieve the necessary economies without an impact on jobs.

He said: "Against the background of the country's financial difficulties, we are in the midst of tough times at council level and we have to play our part in helping the nation's recovery. However, we have worked hard to keep redundancies to the absolute minimum and we will be trying our best to achieve the reductions through voluntary means wherever possible and looking to redeploy staff affected to other necessary council posts that need filling."

Efficiency savings across the council which have helped bring about this proposed second cut in council tax include such things as:
• significant reductions in overall contract costs - £500,000
• reprocurement of postal services - £50,000
• further restructuring of the resources directorate - £474,000
• shared services with other authorities, eg legal services - £100,000
• reduction in speed camera spend (through a new agreement with the Thames Valley Safer Partnership) - £60,000
• savings in planning policy and related accommodation - £100,000
• savings in leisure management - £100,000.

The proposed budget means continuing investment in council services including:
• £2.7m to pay for growth in the cost of supporting vulnerable adults and children
• roads maintenance and repair - £1.4m
• more tree planting - £100,000
• new classrooms for first and primary schools (Oakfield, Wraysbury, Holyport, St Edmund Campion) - £5.6m
• refurbishment investment for Ellington Primary School - £1m
• ongoing support to Maidenhead regeneration - £400,000
• increase in revenue grants to voluntary organisations - £16,000
• support for capital grants to voluntary organisations - £40,000.
The budget also includes the achievement of the cost neutral recycling rewards programme.

If the budget proposals get council go-ahead, the Royal Borough's new Band D council tax rate for 2011/12 will be £990 - a decrease of 0.5% (£5) over 2010/11.

The borough is already £207 below the 2010/11 average Band D rate for unitary councils in England and the gap is likely to widen even more in the year ahead.

The 12% real terms reduction since 2007 is based on the fact that the level of council tax has actually gone down while inflation has gone up. Coupled with the £130 a year that residents can earn from the council's recycling rewards scheme, this means each household will be as much as £258 better off in 2011/12.

Budget proposals will be discussed by the various overview and scrutiny panels over the next few weeks before going to cabinet on Thursday 10 February. The final decision will be made by full council on Tuesday 22 February.

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