Taxing Divide

That was the hunch of Arun leader Derek Whittaker as he prepared to reveal the district council's budget last night (Wednesday), which will mean a near-10 per cent rise in Arun's share of council tax bills.

Mr Whittaker said the main reason for the inflation-busting rise was a shortfall of around 190,000 to 200,000 in the amount of Government grant Arun had been expecting to receive.

He told the Gazette: "There's no doubt that there is a general movement of money to the north of the country, rather than to the south, and a movement away from supporting shire district to metropolitan and unitary authorities in the north."

While the Government had been saying last year that councils could expect a funding increase of 4.5 per cent, Arun at first was told it would receive just 0.4 per cent, and even after intensive lobbying with other short-changed councils, had been promised just 2.3 per cent.

Mr Whittaker accused the Government of imposing a "stealth tax" on council tax payers, by forcing cash-starved local authorities to set higher charges.

And he pointed out that extra duties placed on councils by central Government were not being sufficiently funded by extra grants.

In spite of the increase in Arun's council tax share to 114.30 for a typical, band D property, Mr Whittaker said the charge was the same as it had been in 1993.

The greater part of council tax bills goes to the county council, which last week agreed a 9.7 per cent rise. Smaller amounts go to town and parish councils and to Sussex Police Authority, which has increased its charge by around 18 per cent.