Take a look at page 12 of the RBWM Revenue Budget 2020-21 and you’ll see…
4.14.1 The funding formula that allocates money to councils is extremely complex. The
formula assesses each authority’s “need” for funding and then assumes a standard level of council tax will be raised locally to offset this, which we estimate is based on the average band D tax of £1,465.
4.14.2 This clearly disadvantages councils who set a Council Tax below this level and favours those with higher council tax levels. This estimated standard level of council tax is some £388 above the Council tax that the Royal Borough set under existing Council Tax limits. Effectively this means that the Government assumes that the council is generating £26.6m more funding when it allocates grant to the Royal Borough.
So while the Conservatives, for years, have been celebrating the lowest council tax outside of London… what they were also doing was actively minimising OUR share of any national funding announcements!
“Oh, look, RBWM are charging a very low council tax, the lowest outside London don’t ya know! So that means they must have millions in their reserves to fund things when they go wrong, so they’ll not need the extra £10m we could have given them… give it to Wokingham instead, they could do with it.”
Does that sound like intelligent financial management to you? No wonder we’re sinking!
I hope you’ll be joining us next Tuesday evening, 7pm, at Maidenhead town hall for the Full Council Budget meeting >>>