Country’s Biggest Council ‘Cash Back’ Bites Back at the Credit Crunch

By Prne, Gaea News Network
Wednesday, June 17, 2009

LONDON - Ealing Council is proposing to give a one-off ‘Value For Money Premium’ cash handout to every home in the borough as part of a GBP6 million-plus package to fight the recession.

Under plans, more than 122,000 council tax households in the borough will be given GBP50 cash back, costing the council more than GBP 6.1 million. The scheme would be the biggest of its type ever run by a council in the country.

If approved, residents will be encouraged to spend the one-off windfall payment locally so that local businesses benefit too.

Payments would be made by 1 December so residents have extra cash in time for the Christmas shopping period.

To encourage local spending, the council proposes to scrap its car park charges each weekend throughout December across the borough. In addition, the council will call on local businesses to give residents special discounts to boost trade.

Council Leader, Jason Stacey, said: “We know how hard the recession has hit local people, which is why I am proposing the country’s biggest ever council cash back scheme to help them during the credit crunch.”

“Ealing Council has built up strong reserves to see us through these difficult economic times. But, it is also important to remember that this money belongs to local people, so it is only right that we give back some money during the recession.”

“The cash back scheme will be accompanied by a campaign to encourage residents to shop locally so that this GBP6 million-plus cash injection should also benefit our retailers.”

The GBP50 one-off payment proposal is possible because of the Council’s prudent financial management.

Financial prudence over the past year did not stop new investment, with more than GBP20 million spent on services and projects to make the borough a better place to live. This year the council will continue to fund multi-million pound projects including road and pavement improvements, additional PCSOs and police officers and improvements to children’s services.

Proportionately, the scheme benefits those on lowest incomes the most, as the payment is fixed regardless of the household’s council tax bill.

Following a 0% council tax rise in April, it demonstrates Ealing’s commitment to delivering excellent value for money.

The scheme is being proposed while the council continues to provide high quality services. Ealing Council is rated as a top ‘4 stars’ and ‘Improving Strongly’ authority by the Audit Commission.

Editors’ Notes: - Cash Back will only be given to people who have fully paid their Ealing Council tax. - People who owe council tax will have GBP50 credited against their bill. - Properties that are exempt, empty properties and second homes and some other categories will not receive any Cash Back. - The position for benefit claimants will be clarified prior to any decision being taken on the scheme. - If the scheme is approved, the council will provide residents with more details of the scheme so there is no need for people to contact the council. - The Council’s priorities are cleaner streets, safer communities and value for money services.

Source: Ealing Council

For further information please contact: Claire Parker, +44(0)20-8825-6551, parkerc at ealing.gov.uk

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