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Credit crunch is beginning to bite

Tom Rowley
1/10/2008

HIGH Peak Council is reeling from the credit crunch, town hall chiefs have warned.

Rocketing fuel bills, the crisis in the housing market and a reduced government grant means there are lean times ahead.

At a meeting of Glossopdale Area Forum on Wednesday, Dai Larner, the council’s director of planning and regeneration, said: "The difficult financial climate that exists at the moment means we must use our resources — your taxes — on the right things.

"All the public services in the area are feeling the pinch financially."

The grant High Peak gets from the government to support its council tax revenues will rise by £40,000 (0.6 per cent) to a little over £7m next year.

"That is below inflation — funding from the government is going down in real terms," Mr Larner said. "We are also losing income from the slowdown in the building trade, such as land charges and planning fees."

In addition, the council is being hit by a double whammy: as income falls other costs, such as fuel for heating council offices, leisure centres and vehicles, rockets.

Mr Larner told the forum that out of every £1 council taxpayers in Glossop and elsewhere contribute, only 12p goes to the council.

Ten pence goes to the police, 4p to the fire service and 2p to parish and town councils. A whopping 72p goes to Derbyshire County Council, reflecting its responsibilities in education, highways, social services, libraries and other areas.

However, Mr Larner added: "The council is committed to holding the council tax low, committed to continue increasing the efficient way of spending your money — doing more with less."

This would be achieved this year following negotiation of a new household waste collection contract with Veolia to cut costs and a new agreement with DC Leisure Management to increase investment in leisure centres.

Council overheads should also fall due to the strategic deal with Staffordshire Moorlands Council to share services.

Mr Larner said the council would also continue to try and attract funds from elsewhere in the public sector as well as the Lottery Fund, European Union and private sector.

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