Warwick votes for referendum on 34.2% council tax increase

Warwick District Council has become the first authority to back a referendum on increasing its council tax share above the 2% limit.

Residents will be asked on 7th May to vote on whether to raise council tax by 34.2% to finance the council’s climate action fund.

If they agree the council will generate some £2.9m extra a year, which would be ring-fenced for the fund.

The council’s average share of council tax would then be £223.86, but only £171.86 if voters reject the increase.

Warwick said the increase over and above 2% was equivalent to an extra £1 per week for a Band D household.

Councils must call a referendum if they plan to exceed a 2% increase, and while those with social care responsibilities have been allowed higher increases, this does not apply to Warwick, a district.

Warwick’s cabinet comprises councillors from the Conservative and Whitnash Residents groups, but the council tax increase has all-party support.

A joint statement additionally signed by the Liberal Democrat, Labour and Green groups said the programme would see the council become carbon-neutral by 2025 and the district by 2030.

It explained: “Last summer, your councillors put aside political differences and came together to unanimously declare a climate emergency. 

“A far-reaching plan has since been developed to reduce the council’s carbon emissions to zero and lead further climate change efforts across the district.” 

Plans include investment in homes, sustainable transport, active lifestyles, tree planting and creation of green spaces.

The cost of holding the referendum has been estimated at £300,000.

Council leader Andrew Day said: “In order to achieve our goals, we need to raise council tax by the equivalent of £1 per week for a Band D household—less than half the price of a typical cup of coffee. This means we have to put the rise to the voters in a referendum.

“We can assure residents that this money will only be spent on the [climate] programme, and the public will be able to check we’re doing our job correctly through regular updates in meetings and through our accounts.”

The Local Government Association said it could not comment on the decisions of individual councils, but a spokesperson said: “The LGA wants further council control over existing local taxes, such as the abolition of the council tax referendum threshold and full control over council tax discounts.”

Joanne Pitt, CIPFA’s local government policy officer, said it was possible more councils could opt for a referendum to increase their council tax rates.

“CIPFA would encourage the government to utilise the budget on March 11^th to announce an urgent comprehensive spending review with a four to five year planning horizon.

“Only with long-term support will councils be able to manage their finances effectively—if this is not forthcoming councils will have little option but to consider alternative ways of raising local revenue.”

Although Warwick is the first council to propose a council tax referendum, the then police and crime commissioner of Bedfordshire, Olly Martins, held one unsuccessfully in 2015.

Martins had sought a 15.8% increase to deploy additional neighbourhood police, but this was rejected by 207,551 votes to 91,086.

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