OLDHAM’S biggest political parties have committed to a zero-per-cent Council Tax rise for 2008/9 after an unexpected Government cash windfall.

Borough taxpayers have footed three successive hikes of 4.9 per cent since 2005, but both the ruling Labour group and the Liberal Democrats are now pledging an unprecedented ‘zero increase’.

The news comes after the Government awarded a better-than-expected grant increase of 6.5 per cent to the authority – when just 2.5 per cent had been forecast – providing an extra £6.8 million.

Council leader David Jones said £15m savings in "back office" services such as accountancy and human resourcing – plus a reduction in the council’s property holdings – had also played a major part.

"We find ourselves in this position through good financial management in line with our three-year planning strategy, which has served us well," he said.

"Come February we anticipate being in the unique position of levying a ‘zero’ Council Tax increase for the first time in the history of this form of local taxation in Oldham," it was added.

Cllr Jones also said key spending commitments – like frontline services, protection against flooding, and the Building Schools for the Future programme – would be unaffected.

However, the budget also stipulates £900,000 must be raised by increased fees and charges for some council services such as car parking, work by the environmental services, and the various support functions provided to local schools and organisations.

Cllr Jones said: "It’s still too early to see what level of increase will apply to which service fee or charge at present, but the above-inflation increases will help remove, or part remove, subsidies the taxpayer currently meets for some services.

"The increases will vary from quite negligible up to double percentage figures to find the additional income."

Cllr Howard Sykes, Lib Dem leader, matched Labour’s ‘no rise’ pledge and claimed his party’s alternative budget proposals had already made that option possible – before the extra Government cash was announced.

"The difference between ourselves and Labour is that our intensive budget preparation would enable us to keep the Council Tax down, with this new money allowing us to maintain and improve services – as well as putting the council on a safer footing to deal with looming challenges," he said.

Cllr Lynne Thompson, Lib Dem finance spokesperson, added: "Cllr Jones must now be hoping the borough’s citizens forget his infamous ‘Bunch of Fives’ – three years on the trot of the maximum Council Tax increase Gordon Brown would allow.

"By this year he had jacked up our Council Tax to the most expensive in Greater Manchester, the second-highest of all 36 metropolitan boroughs, while the council’s public satisfaction ranking slid to 159th out of 160 councils."

Final budget proposals will be presented to a meeting of full council on February 20.

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