Above inflation rent increase on the cards for Milton Keynes Council tenants

If approved at the budget-setting meeting on February 24 the increase – which puts a one per cent rise on top of an inflation figure of 0.5 per cent – would add an average of £1.33 per week to rent bills.

All the rents go into a pot called the Housing Revenue Account (HRA) which has set out a five year plan to invest in repairs, regeneration, as well as the council’s plans to build new homes.

On the council tax side of the finances, the meeting will also set MK Council’s £210 million revenue budget, which includes a plan to raise £126.3million of it from the property based tax.

Councillors are set to be asked to approve increasing the council tax by 2.5 per cent, which would bring in £1,465.59 for the average Band D property.

The hung, or “politically balanced” council, which is run by the Labour group, is legally allowed to increase the tax by five per cent, but they have decided not to hike it by that much.

On top of this MK Council amount will be the increases set by Bucks Fire and Rescue Service and Thames Valley Police.

The police increase for its share of the council tax has been set at 6.9 per cent – adding £15 to the Band D average.

The fire service is set to approve a 1.99 per cent increase at its meeting tomorrow (Wednesday, February 17). That works out at 2.5p per week extra for a Band D property.

On top of this – and explaining why council tax varies across the city – is the network of 48 parish councils.

From towns like Newport Pagnell to villages like Emberton, the parishes each have the power to increase council tax for their residents.

Council background papers say that over the next four years MK will need to address a £29.63 million deficit, caused by the impact covid has had on its finances.

The report to councillors states: “So far, the council has identified specific proposals, which could address up to £14.7m of these financial pressures but there is still significant work ahead to identify how the remaining gap can be addressed.”

But for this coming year 2021-22, the budget papers show that the council’s leadership has been able to allocate more than £5 million on its priority areas.

Council leader Pete Marland (Lab, Wolverton) used some flexibility in the budget during the cabinet meeting earlier in February when he announced extra funds to fill in potholes. This included £50,000 to be spent before April.

With local elections looming in May, the political parties will be vying to present their own list of priorities at next week’s budget-setting meeting in their ongoing efforts to win or keep control of the council’s monetary levers of power.