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Surrey Council tax rise of 15% approved before public vote Surrey Council tax rise of 15% approved before public vote
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A 15% increase in council tax has been approved in Surrey - before a referendum on the issue has been held.A 15% increase in council tax has been approved in Surrey - before a referendum on the issue has been held.
The council's cabinet has approved the rates hike, which is due come into effect in April - a month before a legally-required vote. Authorities are legally required to hold a vote on increases above 2%, but council chiefs gave the go-ahead on Tuesday.
A referendum would cost up to £300,000, plus a further £630,000 to send out new bills if the rise was rejected. If it is rubber-stamped by fellow officials, residents could be landed with the tax hike in April - a month before May's ballot on the issue.
The Conservative-led council is expected to approve the measure at a meeting next week. The Conservative-led council said government cuts were to blame.
If the budget is approved by the full council, as is expected, the referendum would take place on 4 May, alongside local elections. It is expected to approve the new rates - which would add £200 a year to the bill for a Band D property - at a meeting next week.
'More for less''More for less'
Any authority wanting to increase council tax by more than 2% must put the plan to a vote. Waiting until the referendum - to be held alongside local elections on 4 May - would prevent the council from starting "vital" work to identify areas for spending cuts, it said.
The proposed increase in Surrey would add nearly £200 to a Band D bill, bringing it to about £1,500 per year. The ballot would cost up to £300,000, plus a further £630,000 to send out new bills if the rise was rejected, according to council documents.
It has blamed government spending cuts and an increased demand for social care for the rise. It has drawn up an alternative budget in case it loses the referendum.
A substitute budget would take effect if the council lost the referendum. Analysis: BBC Surrey political reporter Jack Fiehn
I have been going to cabinet meetings at county hall for several years now, but the mood at this one was particularly solemn.
Conservative councillors said that such a large tax rise went "against the grain", was "counter intuitive" and done with a "heavy heart".
But, in the end, the vote in favour was unanimous.
Councillors also approved an alternative budget, based upon a 5% tax rise, in case the referendum in May is lost. However, they argued that this is not a sustainable option and would mean "draconian" cuts to services if it happened.
Will there be a last minute deal which leads to the referendum being cancelled? The council leader David Hodge said that if the government does make an offer of extra funding over the next few days, he will make a decision about bringing it to the full council meeting on 7 February. If an offer were to happen after that date, he said he would call an emergency meeting.
So there are negotiations taking place and it is still not certain that this tax increase will go ahead.
Councillor Hazel Watson, leader of the Lib-Dem opposition on the council said: "The Conservative administration at County Hall is asking Surrey residents to pay more for less - an unreasonable and unaffordable 15% council tax increase and £93 million of unspecified cuts in council services.Councillor Hazel Watson, leader of the Lib-Dem opposition on the council said: "The Conservative administration at County Hall is asking Surrey residents to pay more for less - an unreasonable and unaffordable 15% council tax increase and £93 million of unspecified cuts in council services.
"It is time for the Tories at County Hall to end their secrecy and to spill the beans about the £93 million of cuts which are coming down the pipeline.""It is time for the Tories at County Hall to end their secrecy and to spill the beans about the £93 million of cuts which are coming down the pipeline."
The council said the alternative budget would lead to cuts of £30m in 2017-18, rising to £73m in 2019-20.The council said the alternative budget would lead to cuts of £30m in 2017-18, rising to £73m in 2019-20.
The council said: "Because a referendum on the proposed council tax would not happen until 4 May 2017, the council would lose time beginning the extra work to achieve the additional £30m service reductions it would need to find within 2017/18."The council said: "Because a referendum on the proposed council tax would not happen until 4 May 2017, the council would lose time beginning the extra work to achieve the additional £30m service reductions it would need to find within 2017/18."
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