A LOCAL authority is to raise its council tax bills by 1.97 per cent in the coming year after councillors voted in favour of an increase.

Richmondshire District Council met on Tuesday at Mercury House, Richmond, to discuss its tax setting, which was agreed despite a call to accept the Government’s grant to freeze the level.

Last month, the authority’s strategy board had approved a recommendation to follow the advice of financial director Sian Moore in raising the levy by 1.97 per cent instead of taking the grant.

She said the freeze was a short-term solution because once the council tax is retained at the same level the possible revenue is lost forever – and over a 10 year period that would be a loss of about £730,000 which would need to be met from reserves.

But Conservative member Coun Yvonne Peacock proposed the council adopted the freeze to give something back to residents.

She said: “If we freeze the tax we will get a grant, and I want us to take the money from the council tax reserve to cover us because that is what that’s for.

Independent Coun Linda Curran said councillors did not have a problem with introducing green waste charges last year, despite the fact residents without means to dispose of it themselves had no choice but to pay for it.

Conservative leader Coun Fleur Butler proposed a further idea to freeze council tax, and also freeze business rates for six months for all small businesses entering the district, and for business start-ups.

She said: “We have been asking for over a year now that more emphasis is placed on supporting business.

“Our budget amendments call for changes in the tax system locally for business and residents to boost the economy.”

Deputy leader of the council Coun Mick Griffiths said Coun Butler that idea had already been taken up.

He said: “We already have a small business grant scheme for sums of up to £1,000; we have invested in the Tour de France which will leave a lasting legacy; and in a matter of days of receiving an unexpected £250,000 from the Government we directed it to local business.”

He added that pensioners were exempt from the tax and vulnerable residents received tax benefit.

Councillors rejected both proposals for a tax freeze and approved the increase.