Councils say they are facing budget problems as a result of their efforts to balance their books during the period ...
Councils say they are facing budget problems as a result of their efforts to balance their books during the period of the poll tax, reports The Independent (p7).
During the poll tax, councils were allowed to limit their pension contributions to as little as 75% of pension fund liabilities from an original 100%.
Since the poll tax has been scrapped however, councils have seen an increasing number of former employees come to rely on the pension funds following early retirements and redundancy, and councils say they are now having to increase their pension contributions to cover pension payments.
As a result, local authorities are having to increase council tax bills. Waverley BC (now Liberal Democrat-controlled) for instance, says an extra£25 has been added to council tax bills to cover 'sleight of hand' budget balancing by the former Tory administration, which reduced pension contributions.