THE changing face of district council tax looks set to kick in for 2016/17.

While Hampshire County Council aims to address a massive £48m funding gap, left after further cuts in government grant, by raising its part of the council tax by 3.99 per cent, East Hampshire District Council (EHDC) is looking to cut its share by two per cent while Alton Town Council’s slice is to remain the same.

Councillors voted during a full Alton Town Council meeting on February 10 to ratify a proposal to maintain the status quo.

It was not an easy ride for the ruling Tory party, with the Lib Dems arguing for an increase. While it would put an additional £1.40 per year onto the council tax bill for a Band D householder, it would also put an extra £10,000 into the coffers, which could be useful for “a rainy day” to boost reserves should the town council be saddled with unplanned maintenance bills, such as the recent problem with the roof at the Energique building in Anstey Park.

While it was a view supported by fellow Lib Dems, a two per cent increase was outvoted seven to four with one abstention, and was therefore lost.

Instead the vote went with maintaining the status quo which, while showing an increase of £28,187 from the previous year to give a precept figure for 2016/17 of £575,187, due to the number of eligible households paying council tax, will see the cost per household remain the same, with the Band D tax rate staying at £78.54 per household.

At county level – equating to the largest share of the council tax take, Hampshire County Council’s cabinet is proposing a 3.99 per cent increase, the first rise in six years will generate around £20m in annual revenue. For residents in an average Band D property, this would equate to an extra £41.40 for the year 2016/17 or just under 80p extra per week.

The council tax charge from the county council for the year beginning April 1 would be £1,079.28 at Band D. It was due to be ratified at full council yesterday (Thursday).

If given the go ahead, the county council will join Hampshire Police in resorting to an increase. It was agreed on January 22 that the policing portion of the council tax would go up 1.99 per cent. For residents in an average Band D property, this will mean an increase of £3.13 to £160.48 per year for the period 2016/17, or 6p per week.

EHDC is taking a different tack by proposing a two per cent drop in council tax.

If approved by full council on February 25, it will leave Band D properties paying £134.58 to EHDC rather than the current charge of £137.33.

The decision is viewed by district council leader Ferris Cowper as “a serious statement of intent” for the council which is trying to reduce council tax to zero by 2024.

Despite unprecedented financial pressures on local authorities, Mr Cowper is determined to buck the national trend through shrewd investment and money-making ventures.

“Where many councils cope with a drop in income by raising taxes or cutting services, we have decided to go a different way.

“We aim to be self-sufficient by removing our reliance on government grants and, if we can, reducing our council tax to nothing,” he said.