COUNCIL tax looks set to rise by at least 1.9 per cent next year but there is scope for it go up by even more.

Swindon Borough Council has announced its draft budget for next year which needs to find £19 million on the current budget.

Increasing council tax is being put forward as one way of dealing with the issue, but fundamentally, the council will need to change how it provides services, chiefs say.

A rise of 1.94 per cent is recommended in the report, an increase of £22 for a band D properties. However, this could rise go up to four per cent once changes announced in last week’s Autumn Statement are taken into account.

George Osbourne said local authorities could raise council tax by a further two per cent as long as the cash was spent on adult social services.

Councillor Russell Holland (Con, St Margaret and South Marston), the cabinet member for finance, said: “For the last five years we have frozen council tax. We are faced again with the dilemma of keeping it down but having less money for services or taxing people and having more money.

“We are going to recommend the rise but it will still leave residents with one of the lowest rates for unitary authorities.

“More details are needed before we make any other decision on the other rise.”

Over the next four years, the council will have to close a funding gap of around £80 million so simply raising rates will not be enough.

Government grants are set to be stopped in a few years while demand for care services continues to rise.

It is expected that in several years, around 80 per cent of the council’s spend will go towards supporting children and adult social services.

As a result, the council has said it needs to find a new approach to how it operates.  

“The services which are carried out by councils can no longer remain as they have been, “said Coun Holland.

“Helping vulnerable people will also be a priority for this council but this means the funds for other services is no longer there.

“We will therefore have to play a far bigger role in encouraging investment in Swindon. This will raise business rates which is going to be the main source of funding.

"This is why we signed up to the new vision earlier this year to outline where we see the town going."

The budget will go out to consultation before the final version is voted through at full council early next year.

The Labour Group Leader, Councillor Jim Grant (Lab, Rodbourne Cheney) said his party would be supporting the rise.

He said: “This council tax proposal together with the Conservatives’ proposals to create new parish councils in order to introduce dramatic council-tax increases through a new precept, shows that they no longer wish to be associated as the low council tax party.

"I think this move is also a recognition that they have been very political on previous decisions they have taken on council tax and that their previous council tax decisions have impacted on services to the vulnerable and the tidiness of our neighbourhoods. Slogans like delivering more for less and efficiency savings have all been a nonsense.

"The Labour Group will definitely be supporting a council tax increase at the budget setting meeting.”