Wyke, Gillingham Ward

Ministers have given the clearest indication yet that councils planning to put council tax up next year will face political retribution.

In a parliamentary debate on Wednesday, housing minister Grant Shapps said councils that reject the government’s offer of cash to freeze council tax could see their funding base altered next year.

The comments follow a veiled threat made two weeks ago by communities secretary Eric Pickles, which at the time was played down by the Department for Communities & Local Government. However, Mr Shapps appeared to confirm that threat when he suggested authorities’ 2012-13 tax base may not be the one used in the new funding system to be introduced the following year.

Speaking in the House of Commons on Wednesday, Mr Shapps was asked to confirm whether councils accepting government funding for a council tax freeze would be left “worse off” because the grant was for one year only and would result in a drop in income in later years.

Mr Shapps said: “The answer is that I cannot confirm that, as we have not described from where we will take the base. It is therefore a mistake for local authorities, based on today, to think that if they ramp up their council tax, that will automatically be taken into account on transition to the new system.

“We have not made a decision or an announcement on that, so if councils want to go ahead and take the risk, they should first listen to the warning from this Dispatch Box.

“With such a big change in the way that local government finance operates coming down the line in 2013, they cannot, right now, factor in their base by putting up council tax. I cannot confirm that today, and they should think not once, not twice, but three times before putting up council tax this year.”

So far 27 councils have rejected the government’s freeze funding – equivilant to one year’s 2.5% increase – with many arguing they cannot afford to lose the income from their tax base in later years without cutting services. Proposed increases range from 2.46% to 3.5% – see LGC blog for full list.

However, DCLG is currently designing a new local government funding system to replace the funding formula and that will include a decision on baseline levels for all councils.

Mr Shapps’ threat suggests tax-raising councils who thought they were building in income for the forseeable future may be forced to start the new system, to be implemented in March 2013, with a council tax base dating from 2011-12.

Mr Pickles previously alluded to a similar danger to future funding levels, but then appeared to back-track.

The LGA declined to comment on Mr Shrapps’ specific threat, but after several days of ministerial pressure on councils to accept the freeze funding, chairman Sir Merrick Cockell (Con) defended councils right to make their own decision.

“They are faced with a tough call over whether or not to shield more services from reductions by increasing council tax revenue,” he said. “These decisions must be based on local priorities and councillors know they will be judged solely by the people they represent when the votes are cast in the next local elections.”

Sir Merrick said the local government funding settlement for 2012-13, which Mr Shapps confirmed in Parliament on Wednesday, showed “local government is carrying more than its fair share of public spending cuts” and he contradicted ministerial claims that councils could avoid cutting services. “Further reductions in frontline services are unavoidable”, Sir Merrick said.

Commenting on the first two years of local government cuts, he added: “Whitehall departments can learn much from our record as they try to achieve their own, much more modest, saving targets.”

On the 25th March at least two more shops in Gillingham High Street will close down, “Fresh and Fruity” and “Cooks Carpets” will cease to trade on that “Dark” day, others are still trying to balance increased rents and enforced long leases with the low footfall currently experienced. Bob Inge of “Gillingham Photographic” is to retire rather than commit to the ten year lease on offer from landlord, Mr Hopkins.
The promise that an Asda store on Station Road would increase the footfall in the High Street has never come to fruition. At peak times I have seen the supermarket’s car park full and at the same time the High Street deserted.
The rents for some High Street shops are up for renewal in March and the proposed raise has been the final straw for some local shopkeepers.
The problem of low “foot fall” in the High Street is making it very hard to earn a living, Mike Long of “Fresh and Fruity” said, “I have my family to support and I could earn more money working the same hours in Asda.”
I am just as much at fault as a lot of you, I have only been into “Fresh and Fruity” a handful of times and “Cooks Carpets” never. What is the saying? “Use it or lose it”, well we didn’t use it and we have lost it, on 25th March they will have gone. What will we tell the people who move into Gillingham in this fast expanding town when they ask why there isn’t a Butchers, Bakers, Fruit and Veg shop, Carpet shop, Photographic shop…the list will go on. Will we say “The shops failed” or will we tell the truth “We failed the shops!”. Since I became a District Councillor I have done my best to keep in touch with those who elected me. I ask how could we improve the Town and what would people like to see here in Gillingham? Nine out of ten people mention the High Street and how run down they think it is. How they would like to see brand clothes shops or maybe “Currys” or “PC World”, every week there are new rumours started through wishful thinking as to the shops coming to town, so far this week I have heard that “Argos” is coming and “B & Q”, well let me tell you, at present they are not and why would they?
What is the answer? I am asking all of you for your views, how can we turn this around and get our High Street back. A local Councillor said to me last year, “The High Street is dead and soon all the shops will be out on the business parks!” Is that what you want?
If we are fortunate enough that the soon to be, empty shop premises in our High Street are taken over, please use them. If we use them we will create more footfall and in doing so will attract more businesses. It is down to us.
I am fed up with reading letters in the BVM where people are knocking Gillingham, it is very easy to find faults and it doesn’t take much intelligence. The hard part is finding solutions, well this is your chance, a Town and District Councillor is asking for your input. Tell me what you want; work with me and together we can create the Town we all want to live in. This is your town, take some responsibility for it.

Cllr David Walsh
Champion for Gillingham

Today at North Dorset District Council it was recommended by Cabinet to Council that Council Tax be raised by 3.49% which equates to an additional 1 pence per day.

What are your views?
Please comment

Please note that the opening hours of Gillingham Police Station have now
changed.

In an emergency always call 999.

I am very pleased to inform you that a small group of Community minded people have set up an on-line nespaper/magazine serving Gillingham, Shaftesbury and the surrounding parishes. It has only just started so please give it your full support.
www.westernleader.co.uk