Wrexham Set For Council Tax and Rent Increase

Wrexham Council is set to increase council tax and council house rent in what could come as a double blow for some residents.

The provisional figures for the year 2012/13 would see council tax increased by 2.69% and council house rent by an even bigger 5.45%.

The council will also ask its executive board members to approve a 1.5% rise in its net revenue budget up to £211,890,182 from £208,608,688 this year.

Council chiefs insisted that they are trying to keep council tax as low as possible and pointed out that for the current financial year Wrexham’s council tax rate is the 13th lowest in England and Wales.

They also stressed that both figures are below the current inflation level of around 6%.

Average council tax for Band D properties would go up to £914.18 from £891.11 for this year under the proposals.

Leader of Wrexham Council, Cllr Ron Davies stressed that council tax increase was a relatively low one and that Wrexham has one of the lowest rates in North Wales.

He said: “What we have been doing for the past 6 to 7 years is an accumulative rise which is very low, lots of councils are raising council tax by a lot more than we are.

“It’s not a kneejerk reaction with election time coming, our increase has been 3% or lower for the past few years and we are changing the way we do things but not cutting services.”

The council’s proposed budget would protect services such as education and social care in line with Welsh Government legislation.

With regards to the 5.45% increase in council house rent, Landlord Services Manager, Fred Czulowski, said that the council’s hands were tied on the matter due to guideline rent figures being set by the Welsh Government.

He said: “There is little choice other than to follow the Welsh Government guidelines, if we don’t we could have financial penalties imposed on us.”

It would mean that average rent for the authority’s 11,500 properties will go up to £73.55 per week, to be collected over 48 weeks.

The excess revenue generated from the rent increase will be used for the repair and improvement of council houses, meaning increased expenditure on day to day repairs.

However, under controversial housing finance rules the council must pay £11.53 million of the £39 million it earns in rent each year to HM Treasury in Westminster, a rule that council chiefs said they have lobbied against to both the UK and Welsh Governments.

Due to the council’s low maintenance and management costs it is able to make a significant contribution of £5.5 million to support the proposed housing improvement programme of £13.1 million, although this is still three times below the £39 million needed to bring its housing stock up to standard.