Cabinet calls for no tax rise

Oswestry's council tax payers look likely to get a financial bonus this year - a zero increase in the borough council's portion of their bill. But the news for some residents is not all good.

While the borough council's cabinet members last night recommended no increase in their part of the council tax, council house tenants are facing higher than inflation rent increases.

The Government wants local authorities to increase rents by 7.6 per cent, which for Oswestry will mean bills rising from £58.46 to £62.91. But repairs and services for council homes will be reduced.

The no-rise recommendation in council tax, however, is thanks to the impending move to a unitary authority, which will bring to an end the role of the authority.

If agreed by full council, the council tax for the borough council, for a band D property, will be £197.99.

Oswestry's finance chief, Mark Taylor, suggested the council use cash reserves to fund the increase in its budget for the coming year.

In his report to councillors Mr Taylor said that the council must make savings in its housing account.

He said: "It has become necessary to cut services in this way to generate sufficient savings to provide the level of funding required to achieve the Decent Homes Standard by 2010."

It comes after tenants last year voted overwhelmingly against seeing their homes transferred from the council to a housing association.

The budget strategy will be recommended to full council in February.