Guildford Borough Council approves maximum 2.99% tax rise

Guildford Borough Council narrowly avoided effectively declaring itself bankrupt

A council has voted to increase council tax by 2.99%, which is the maximum allowed.

A meeting of Guildford Borough Council on Wednesday also confirmed a 7.7% increase in rent for council tenants.

While opposition councillors voted for an increase of only 5% on rents, this was rejected in a knife-edge vote.

The authority issued a warning in July it may struggle to balance its budget for the year, though it has now avoided bankruptcy.

Steps to makes savings include removing more than £96m from the capital budget and reviewing which properties can be sold.

The council's housing department is currently undergoing an investigation into alleged fraud.

Joss Bigmore, leader of the Residents for Guildford and Villages group, said after the meeting he was pleased other opposition parties had supported his motion to reduce the "shocking" increase in social rents.

The 7.7% increase was ultimately decided by the council's mayor after a tied vote.

'Hard to understand'

Mr Bigmore said: "Against a backdrop of a cost of living crisis, and poor performance from our housing team, the decision to hit those families with a 7.7% increase in rent is hard to understand or justify.

"This year the council will profit £8m from its tenants, adding to the existing £80m of reserves, this rent increase is grossly unfair, and a reward for failure."

Meeting documents state just over 60% of council tenants received benefits which would cover their rent.

The report continued: "Approximately 92% of tenants are on social rents and the average expected change to their weekly rent on average will be £9.57."

Philip Brooker, the Conservative group leader, told BBC South East: "Every council tenant has been badly let down by the people they elected to represent them."

Julia McShane, Liberal Democrat council leader and councillor for Westborough ward, said the authority's priority is to protect tenants "both now and in the long term".

"Starving the housing budget of income by refusing to ensure rents try to keep pace with inflation would have meant looking after no one," she added.

Guildford Borough Council has declined to comment.

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