Uttlesford has voted down an opportunity to freeze council tax, but will consider it in the long run.
The district council will set up a working group for councillors and officers, which will explore options for district-level council tax.
But the council opted not to approve an opposition motion to freeze its share of the tax for the financial year 2023-2024, despite warning over the worsening cost of living crisis for the district’s most vulnerable residents.
Amending the original motion, Cllr Neil Hargreaves (Residents for Uttlesford, Newport) criticised the initial proposals as unclear and said they would only have been advisory.
He said: “I think there needs to be a discussion before anything is agreed which would reduce the council’s income and possibly have a council expenditure to it.”
But Cllr Melvin Caton (Lib Dem and Green Alliance, Stansted South & Birchanger) said his group’s proposals were too important to be submitted in last minute amendment to the budget in spring next year.
He said: “It is too important a proposal to be the subject of political ping pong. I am sure we have all heard first hand of local people who are struggling with their heating bills or not being able to pay for hot school meals for their children.”
The motion suggested targeting a rebate at lower and middle income families who paid council tax in the district.
Other councillors from the Residents for Uttlesford party, which controls the council, said it would not be possible to change council tax rates for different bands and that opting for a rebate would be complex.
The Office for Budget Responsibility has forecast real household disposable income will fall by 7.1 per cent between 2021/22 and 2023/24.
This comes as many councils are reporting pressures on their finances, in part caused by the cost of living crisis.
Earlier this month councillors clashed over risks to services, after overspends of £779,000 and £1.176m were forecast in the authorities general fund and housing revenue account, respectively.
Elsewhere in Essex, Epping Forest District Council is reporting a budget gap of £4m, while Colchester City Council is reporting a gap “in excess” of £5m.
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