The Council Tax and Borrowing trap. RBWM Council Tax lags behind other councils and RBWM will now have financial problems for many years into the future. HM Government has informed RBWM that the Council Tax can be raised by up to 7.5%. In fact – the long-term reductions in Central Government funding have resulted in a Budget Deficit but HM Government has generously confirmed that further monies can be borrowed and added to our existing debt mountain.
My view is that borrowing ever more money – and needing increasing amounts to service the debt – is not a solution to the problem. My best estimate is that if RBWM is repeatedly allowed to increase the Council Tax by an amount above the national limit – it will still take over ten years to achieve any parity with similar Councils. THIS IS NOT GOOD!
Unbelievable message from HM Government to RBWM. – DHWNEWS