Residents for Uttlesford (R4U) announced that its administration intends to deliver a balanced budget for 2023, with a fourth year of council tax increases held down to approximately a penny a day.
Cllr Neil Hargreaves, UDC deputy leader and portfolio holder for finance, said: "We understand the financial pain many residents are feeling, so our administration at UDC is proposing our fourth year of council tax increases at UDC that are well below the rate of inflation.
"The result will be that the average 2023 district council precept will only rise by 10p a week.
"This is just over £5 a year in total – which is in stark contrast to the more than £60 a year ECC is expected to add to its precept.
"UDC’s small increase will allow services to continue, after all we all need our bins collecting. We will also continue UDC’s tax support scheme for those on low incomes, which is the most generous in Essex.
"Our approach balances the constrained pockets of residents with the need to deliver their council services."
Explaining the council's financial situation, Cllr Hargreaves added: "Under R4U the council has raised £16m in external income from its investment portfolio. This has allowed additional spending on important initiatives and services.
"As a result of R4U fixing the financial black hole inherited from the Conservatives and also generating new income outside of council taxes, UDC is in the enviable position of being able to run a balanced budget and hold the district council tax precept to a minimal increase of about 10p a week in 2023.
"That is much lower than ECC and many authorities in the country. The proof is in the pudding and visible to residents.”
R4U accused opposition parties of wanting unfunded spending increases, which they described as "reckless economics".
George Smith, leader of the Conservative group at Uttlesford District Council, said: "The announcement that the R4U administration plan to increase council tax by what is actually the maximum amount possible for a fourth successive year, comes at a time when many households are struggling to pay their bills.
"The country has been anticipating interest rates rising for months and yet the administration made no effort to fix interest rates early. The increased cost of servicing their massive investment debt has cost the council significant lost income.
"The only way R4U are able to balance next year’s budget is through using up a third of the council’s reserves. This is exceptionally short-sighted.
"In February this year, UDC Officers confirmed the need to sell one of the investment assets, to reduce repayments and maximise income. Yet the administration has done nothing.
"Worse, R4U are leaving a financial blackhole in the council's finances and rather than looking to reduce council spending now, are leaving all the difficult decisions to a new administration in May.
"Local government finance has been under pressure for many years, and throughout their term in office R4U’s priorities has been to increase spending, rather than building resilience in council services."
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