Good news and bad on council tax

IT was good news and bad news for Arun council tax payers this week when next year's government grant figures were announced.

The district council is getting a three per cent increase, which a council spokesman said yesterday was good news.

But the grant being received by West Sussex County Council is the lowest in the country, and county council leader Henry Smith said that this will lead to "painful" choices when preparing the 2006-07 budget.

Such a low county grant is likely to far outweigh any benefit from an increased Arun grant, because county council expenditure accounts for about 76 per cent of every pound paid in council tax.

Last year, West Sussex received the second lowest grant increase of any county council. This year it has the lowest '“ only a two per cent increase.

Few major councils providing services such as highways and caring services for children and adults have fared well.

The government has held down grant increases to 30 of the 34 counties to between only two per cent to three per cent.

West Sussex leader Henry Smith, said: "The Local Government Association has warned government that an extra 2 billion was needed to stave off massive council tax increases or swingeing cuts in services. The government has failed to find what was needed, injecting only an extra 305 million.