A BASINGSTOKE Labour leader has voiced his concerns over the borough council's budget after the cabinet approved proposals to 'freeze' its share of the council tax. 

Proposals for the Medium Term Financial Strategy (MTFS) and Budget Update Report for the next four financial years were approved by the cabinet on Tuesday, January 7.

The recommendations saw a ‘freeze’ on the council’s share of council tax, along with parking charges and garden waste subscription services in Basingstoke for 2023-24.

Leader of the council's Labour group Cllr Andrew McCormick said it is only the council’s share of council tax is being frozen, and residents will see an increase in their council tax bills this April.

“Council tax comprises four components – Hampshire County Council (HCC) (75.5 per cent), Basingstoke and Deane (7.5 per cent), police (13 per cent) and fire and rescue (4 per cent).

“The other three are all expected to raise theirs. A 4.99 per cent increase for HCC would mean an extra £69.40 a year on council tax. As Hampshire are only a year or two away from issuing a Section 114 notice and going bust, they will be raising their component by the maximum amount.

“Therefore it's incorrect to state council tax will freeze: residents will see an increase in their council tax bills this April.”

Cllr McCormick said the council is not increasing its tax share because of the expected rental income for Premier Inn in New Road.

“While [council leader] Cllr Simon Minas-Bound can freeze the borough component, this saves council tax payers £5 a year over what he could increase it by if he wanted.

“The reason why the borough component is not being increased this year is because the council spent £9.28m of previous council taxpayers' money last year buying the Premier Inn.

“The expected rental income would approximately equal £5 per household in council tax, but basically an entire year's council tax receipts were spent buying the hotel.

“A better way to get rental income would be to build council houses, this would address the housing shortage and waiting list of approximately 5,000 people needing housing in the borough.”

Replying to the comments, council leader Cllr Minas-Bound said: "It is only right that at this time when people are struggling with rising costs, we freeze council tax bills. Staying at £136.42 a year for the average borough household is likely to make us the lowest of the districts in Hampshire, and most of the rest of the country, again. Yet we are still one of the highest spending districts per resident. This proposal will be considered by council as part of setting next year’s budget at the meeting on 23 February 2023.

“Our wide-ranging and extensive property portfolio, which has been well managed over time, brings in an income of over £18m a year. This plays a vital role in how we can fund services and improvements without burdening council taxpayers. The income from our well-established property portfolio means that the average household in the borough gets back more than double in spend on services than they pay out in council tax.

“Our property investment strategy does not exclude any type of property investment, including residential, where the investment would bring a good rate of return to fund services and is funded through the council's capital funds. The council’s share of the council tax precept is used to support key frontline services to residents.”