Council tax set to rise above inflation

GATESHEAD Council are set to impose a double-inflation council tax rise following another poor cash deal from the Government.

Gateshead Council, along with the rest of the North East, was handed a below average increase in the grant from the Government that helps pay for local services. Gateshead’s increase was 2.1%, less than inflation.

The likely outcome is that the Labour run Council will increase council tax by more than inflation to make up the loss. The Council have also indicated that the rise could be more than 5%, more than twice the rate of inflation.

"Gateshead has clearly had a poor deal from the Government," said Andrew Graham, Lib Dem Focus Team member in Winlaton and High Spen. "The effect is that residents here will end up paying more council tax whilst getting no extra services.

"Yet across the river in Liberal Democrat controlled Newcastle, the council is planning a below inflation rise."

Meanwhile Liberal Democrats are continuing to press for Council Tax to be scrapped.
"Council tax is the most unfair form of tax in the country and hits many families hard," said local Lib Dem Councillor Brenda Osborne.

"The sooner it's replaced by a fairer system based on ability to pay, the better."

Photo: Lib Dem campaigner Andrew Graham is backing calls to get rid of council tax. But Labour in Gateshead are considering an inflation busting rise.