VALE MAY DIG INTO RESERVES TO KEEP COUNCIL-TAX STEADY

Residents in Penarth may be spared yet another huge rise in Vale Council Tax – but the South Wales Police and Crime Commissioner and Penarth Town Council have yet to set their new precepts for next year

The Vale of Glamorgan Council may consider using some of the council’s existing “Council Fund Reserves” to stave off large increases in next year’s 2019/20 Council Tax.

By March 31st 2019, these reserves  (the equivalent of “cash under the mattress”) are projected to stand at a total of £13,632,000.

In some parts of Penarth – particularly in long-established Victorian areas – familiues are now having to pay over £3,000 a year in Council Tax – just for the privilege of living in their own homes.

Some sources  say that councils should hold in reserve a “minimum level 5% of net budget” – which, in the Vale of Glamorgan Council’s case, is the equivalent of around £11,000,000.  

However others say there’s no need for the cash reserve to be so high as £11,000,000  – and this amount could be prudently reduced , as long as a minimum of £7,000,000 is held in reserve.

If it was trimmed back to £7,000,000 (rather than the current £11,000,000)  that would mean that up to £6,632,000 could conceivably be used to avoid having to impose a  large increase in Council Tax on local residents in 2019/20.

The Vale Council recognises that the existing reserves are “not inexhaustible” and have taken years of careful financial management to develop to their current level.

However there’s a warning that if some of this standby cash IS used to balance the revenue budget for next year , there would need to be “a higher level of savings” in future years.

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Penarth Daily News email address dmj@newsnet.uk . Penarth Daily News is an independent free on-line fair and balanced news service published by NewsNet Ltd covering the town of Penarth in the Vale of Glamorgan, Wales, UK. All our news items are based on the information we receive or discover at the time of publication and are published on the basis that they are accurate to the best of our knowledge and belief at that time. Comments posted on the site by commentators reflect their opinions and are not necessarily shared, endorsed or supported by Penarth Daily News.
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8 Responses to VALE MAY DIG INTO RESERVES TO KEEP COUNCIL-TAX STEADY

  1. Lesley says:

    “and have taken years of careful financial management to develop to their current level.” By the previous Labour administration

    • Kevin Mahoney says:

      The Labour Welsh Assembly administration which of course gives over £200 per year per head less to citizens of the Vale of Glamorgan than neighbouring Cardiff. If the imbalance was even partially addressed then spending and services could be maintained and even increased.

      Vote Labour to be discriminated against financially by the idiots laughably described as running Wales.

      • Rhys Weston says:

        ‘The Vale Council recognises that the existing reserves are “not inexhaustible” and have taken years of careful financial management to develop to their current leveL’ Does this actually mean ‘years of neglect and lack of spending on the electorate and their environs ie litter/fly tipping piling up and masses of staff on long term sick/suspension being paid full pay, We In Sully have been paying a suspended Community Council Clerk tens of thousands of pounds (which the Vale refuse to allow the Community Council to give an accurate figure even after numerous FOI requests) after years of the individual concerned poor performance and dubious (and arguably fraudulent) activity.

  2. Philip Rapier says:

    This does not look good for the Vale’s future survival as a Local Authority.
    The Vale’s reserves may very soon become depleted due to Local Authorities having to use our cash for helping maintain food supplies in the event of a Brexit No Deal- or Bad Deal.worst case scenario.
    Westminster and the Senedd will be aware that Barry will have a critical role to play with EU food provisions coming in to the Docks and Rhoose Airport from the Irish Republic (at 20 % higher prices ). Council sponsored Foodbanks are even a possibility.
    This will be necessary to help relieve the anticipated shortages due to the Lorry Traffic Nightmare at Dover.
    The Council will have to pay the logistics bill as their first obligation is to keep us fed and secure.
    Keep Calm Carry On and remember Brexit means Brexit

  3. Phil Nedin says:

    I don’t think it is appropriate to support a Council Tax increase through the reserve. The reserve is there for unforeseen circumstances not for supporting everyday costs that should be borne by the population of Vale for the benefit of the Vale. I am sure that the reserve was built up by previous administrations over the years and no doubt there would have been much soul searching when balancing the budget whilst maintaining the reserve. This would be a sell out of the other administrations efforts made over the years.

  4. Mike Smith says:

    Dont worry Alun Michael will see your total tax bill will out pace inflation again. Someone has to pay his salary.

  5. Jed says:

    They should use the reserves to cut tax, and then the scale of the reserves can’t be used to justify less funding from the Bay -surely?

  6. mikeyorke says:

    Have I just read that correctly? £11 million reserve!!!!!!?

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