Raising council tax by two per cent could net Horsham District Council £150,000 a year but would lose the £82,000 Government pays it to freeze its precept.
This week central Government told local authorities that if they raise council tax by more than two per cent a referendum would need to be called.
At a Finance and Performance Working Group last night (Wednesday February 5) councillors were told that a two per cent rise in its precept, equating to £2.70 a year for a Band D property, would net HDC around £150,000 a year.
However it would lose the £82,000 it gets from Government for freezing its element of council tax, although officers suggested these payments would stop in 2016.
John Bailey (Con, Rudgwick) said: “We have got to raise the tax on something. We have got to raise money from somewhere.”
HDC is expected to decide on its precept as part of the council tax bill when it sets its budget later in February.
West Sussex County Council have already indicated their intention to freeze their element of council tax, while Katy Bourne, Police and Crime Commissioner for Sussex, is looking to add £4.95 to Sussex Police’s precept for a Band D property for 2014/15.
Parish councils also set their own precept.
Do you think HDC should increase its share of council tax?