Page last updated at 10:12 GMT, Monday, December 19 2011

Council announces a unique 10 Year Record of below Inflation Council Tax

Eastleigh Borough Council has confirmed that it will be freezing its Council Tax for 2012 and setting a council tax of 1% below inflation for 2013 providing borough residents with a ten year period of below inflation council tax.

Following the Government’s Autumn Statement the council has had confirmation of its financial settlement for next year.  This is in line with expectations following last year’s spending review and represents a loss of grant of 10.9%, giving Eastleigh Borough Council income of £5.3m for the coming year.

In addition, the Council will receive an additional £149,000 for freezing its  Council Tax for a second year running, and that in turn following seven years of increases of less than inflation.  This year’s grant is a “one off” so also represents a real-terms loss of income to the Council as it will not be recoverable from future council tax income. 

Council Leader Keith House said ”Given the tough financial time being had by many of our residents, as soon as this was announced by the Chancellor in October we started to plan for this change and now we have our settlement details from government I am pleased to confirm it.  There will be a temptation for some councils to take the money now and then ramp up council tax in 2013.  We will be freezing our Council Tax next year, but in 2013, when inflation is expected to be around the Government target of 2%, we will return to our Council Tax Guarantee of increases 1% less than the retail price index.

He added “ This will give Eastleigh Borough residents a total of 10 years of tax increases below inflation.  We believe this to be an unequalled record and commitment, anywhere in the country and we can do this without significant reductions in frontline services.  This has been achieved in large part, due to our record of sound financial management, and our programme of investments in property such our proposals for the Rose Bowl.”