Maximum council tax rise agreed amid row over housing and ‘poor investments’

The rise was agreed by the vast majority of councillors from different parties at the annual budget meeting. The 2.99 per cent increase is the highest allowed by district councils without holding a public referendum.

The council’s coalition Green, Lib-Dem and Morecambe Bay Independents leadership won support for various measures covering the next 12 months and longer-term plans.

However, Conservatives made accusations about council investment in commercial property in past years, saying more investment should have instead gone into housing. But leading Greens defended their housing work.

And a late suggestion to allocate thousands of pounds for small festival grants will be looked at in a future council meeting. It came from Morecambe Bay Independent Martin Bottoms

The budget included council tax, council housing, day-to-day running costs for council services and big one-off ‘capital’ schemes.

On commercial property investments, Conservative Coun Andrew Gardiner highlighted some vacant shop or industrial buildings in Lancaster. He asked for specific details about any external borrowing by the council to buy commercial buildings.

He said: “Several years ago, I had heated discussions with a former Labour city council leader about commercial property. My concerns then included the council borrowing a lot of money to buy buildings like the former Reebok building [at White Lund Industrial Estate]. But now, I’m being told we did not borrow.

“I know the council wants to build homes on the old Skerton School site but I don’t think the funding is there. However, if we had off-loaded these commercial properties, we could have supported good quality housing, which is what people want.

“And if we had set up a local authority trading company a few years ago, we might have had the opportunity to invest in housing for people – and get a good return. But that has not happened. The vision has been wrong.”

But Greens Coun Tim Hamilton-Cox, who has the cabinet financial remit, said the council had not borrowed externally and was ‘under-borrowing’. He would provide written specific answers. And the circumstances had not been right to set up a LatCo in recent years, he said.

But he added: “Coun Gardiner’s speech is aimed at press reporters here tonight. It reminds me of the ramblings of Donald Trump. He is weaving together disparate, unconnected things.

“It is mainly Conservative councils elsewhere which have over-spent on commercial property. In the past, I have been opposed to some decisons at this council. But the situation is dynamic and changes. There is council work going on all the time regarding commercial property and we now have a brilliant team fosued on it.

“Furthermore, it’s a bit rich for Conservatives to talk about housing when they have done nothing to support housing for years.”

Labour opposition councillors supported some key ‘administrative’ votes in the budget, to allow it to go ahead. But they abstained, remained neutral, on some votes on specific areas, such as council housing finances.

Regarding council tax, households across the Lancaster and Morecambe district will also pay taxes to Lancashire County Council, the police, fire service and crime commissioner’s office. And communities with a town or parish council will pay a local precept too.