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Serious concerns have been raised about the amount of money the Council will have to spend on services next year due to a lack of government funding. Minister John Healey has confirmed that the Council will receive an increase of just 0.5% on its annual government grant – even though inflation is currently at 4.5%. The Council is concerned that the minimal increase to its main government grant will have an inevitable knock-on effect in other areas, particularly as the country enters a recession. In its latest set of priorities, the Council committed to keeping Council Tax increases below 3% to help residents through the economic downturn and relieve some of the burden many households currently face. But in view of the lack of financial support from central government, Council members are warning that tough decisions will have to be made over the coming months in order to keep that promise. Leader of the Council Mrs Gillian Brown said: “We are bitterly disappointed and angry that the government has failed to give us the resources to help our residents at this difficult time. “We have always been committed to keeping Council Tax as low as possible as we know that is of the utmost importance to people in Arun, and never more so than now. “Whilst we intend to honour this commitment, this patently insufficient increase in government grant money means we will be faced with some tough choices next year in order to keep our books balanced. “The recession has seen an increase in the public’s demand for some of our services, such as homelessness enquiries, housing and Council Tax benefits, so what we really needed was additional help.” Prior notification was received last year that an increase of only 0.5% in Arun’s 2008/09 grant was planned, but despite the Council’s protestations, a larger increase has been rejected. Like all other local authorities, Arun relies on the grant to help provide a good level of service without having to pass on the cost to the tax payer. Councillor Paul Dendle, Cabinet Member for Finance and Central Services, said: “This is very frustrating news as we work extremely hard to offer our residents a top quality service whilst keeping Council Tax increases to an absolute minimum. “Whilst this Council is in a much better position than many others due to the robust financial regime that has been in place over the past few years, these added financial pressures will make it more difficult than ever and it makes a mockery of the governments protestations that they helping keep the economy going when they are stifling our efforts to help those affected by the very recession that they caused.”

 
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