Government spending plans will force council tax up in Oldham Borough every year by at least 5% say Liberal Democrats

Government spending plans for local councils have come under fire from Oldham Liberal Democrat Leader councillor Howard Sykes MBE who says the recent spending review still leaves Oldham Council facing a “budget black hole.”  Sykes hit out at the government and warned that people in Oldham would now face more years of council tax hikes of at least 5% under Labour.

Councillor Sykes said, “Every year Oldham’s Labour administration sets a budget which uses huge sums from our council reserves to balance the books.  Once you use reserves they are gone forever.  Labour’s approach has been to raid the bank and promise that things will get easier under a Labour Government.

“Well, we’ve had a year of this government now and it’s clear that no money is coming to plug the blackhole that Oldham Labour have created in our finances.  The Labour Government’s spending plans also force councils to implement maximum council tax increases (5%) every year.  The tax rises are baked into their figures.”

Sykes was not alone in criticising the latest spending plans.  The Local Government Association – a cross-party body – has also warned that the government is leaving councils with no option other than ever increasing council tax bills.  In a statement, an LGA spokesperson said this was "not the solution for meeting long-term pressures” facing frontline services.

Councillor Sykes said, “Labour is going to run out of road very quickly.  And they should be honest with residents, what the government is doing means taxes will keep going up for working families.  If a fair deal on local government funding is not reached it will result in financial ruin for Oldham Borough and the collapse of vital services.”