Hertsmere approves budget with council tax increase

PUBLISHED: 08:25 03 March 2020

How council tax is used to fund Hertsmere services. Picture: HBC.

How council tax is used to fund Hertsmere services. Picture: HBC.


Residents are set to pay £5 more for their council tax after Hertsmere Borough Council approved their revenue budget on Wednesday (February 26).

Cllr John Graham, portfolio holder for finance. Picture: © Blake Ezra Photography Ltd. 2012.Cllr John Graham, portfolio holder for finance. Picture: © Blake Ezra Photography Ltd. 2012.

To fund the budget, a £5 increase a month in Hertsmere Borough Council's share of council tax bills was agreed, the same rise as last year. This is an increase of 2.8 per cent per average household for the coming year.

Under these proposals, a resident in a Band D property would pay an average of just over £182 in council tax to Hertsmere Borough Council for its services for the year 2020/21 - which equates to around 50p per day.

The money is used to fund services including waste and recycling, planning, housing, parks and open spaces, street cleaning and environmental health, benefits administration and contributions towards Police Community Support Officers and the Citizens Advice Bureau.

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Portfolio holder for finance and property, Cllr John Graham, commented: "We have taken a cautious approach to setting this year's budget as the latest government spending round was for a single year rather than the multi-year settlement that had been anticipated. We have already seen a steep decline in government funding generally since 2010, meaning we are increasingly looking to new and innovative ways to generate income and balance our budget.

"We have agreed an increase of £5 for our share of council tax in the budget for this forthcoming financial year. This will be essential to enable us to continue to deliver our existing and growing range of services for Hertsmere's residents."

As a billing authority, Hertsmere Borough Council collects the council tax every year, but the money residents pay does not all go to the borough council.

On average, Hertsmere gets 10 per cent, or 10p in every £1 residents pay, Hertfordshire County Council gets 77 per cent, Hertfordshire's Police and Crime Commissioner gets 11 per cent and residents who live in Aldenham Parish Council, Elstree and Borehamwood Town Council, Shenley Parish Council and South Mimms Parish Council areas receive two per cent

This year sees a small increase in general government finance funding, the first since 2010, through an increase in the business rates baseline grant, however the decline in central government funding since 2010 means that it now represents just 23 per cent of our funding compared to 54 per cent in 2010/11.

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