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Figures allegedly uncovered by Liberal Democrats in Redcar and Cleveland suggest that there is enough spare cash in the council’s coffers to give residents a council tax cut in this year’s budget.

In a statement released today, Liberal Democrat Deputy Group Leader and prospective MP for the Redcar Constituency, Councillor Josh Mason, says that for the last three years, the council has turned down extra government grants to freeze council tax, instead hiking tax for local people. To make up for raising the tax in previous years, Liberal Democrats are calling on the Labour administration to use surplus reserves to give a tax cut this year – and still benefit from more than £600,000 a year in extra grant funding from the government.

Councillor Josh Mason said “The council has easily enough funds in reserve to offer hardworking people a cut in council tax this year.

“For the last three years they’ve turned down free government money for freezing council tax, choosing to increase the burden on local householders instead.

“In tough financial times, when the government is cutting income tax and reducing fuel bills, it’s right that Labour should be doing more to help hard-pressed local people, not hiking up the cost of living.”

Speaking to Zetland FM in response to Councillor Mason's remarks, Councillor George Dunning, leader of Redcar and Cleveland Borough Council, said “The council’s cabinet will meet on December 9th to launch our budget proposals, which will be subject to consultation.

“Members of the public are more than welcome to have their say on how we allocate funding, with their views taken on board before we make our final decision in March 2015.”

Also speaking to Zetland FM, Councillor Norman Pickthall, Cabinet Member for Corporate Resources added: “The Lib Dems statement that they have uncovered figures is totally misleading. The ‘spare money’ Councillor Mason is alluding to was part of a presentation given in a public meeting as part of the Council’s overall budget proposals.

“While Council tax has risen in recent years, these increases have been substantially below inflation levels. This has been at a time when cuts to government funding has seen our overall budget for important local services reducing significantly.

“The offer of £600k per year from the Government that Councillor Mason is praising is small compared to the £11.5M worth of cuts they are inflicting on Redcar and Cleveland Borough Council in the coming financial year.

“Redcar and Cleveland have difficult choices to make in the coming weeks and months.  It’s important that we fully consult with the public and consider all the options carefully before making a decision.”