The district council’s annual budget-setting process is nearly complete. I will be at meetings to discuss the budget papers tonight and on Thursday before the full council meets to debate and agree the final version on Tuesday 16 February.

Two years ago Liberal Democrat councillors unsuccessfully argued for a lower council tax rise than the Conservatives set. We would have argued for a freeze in the council tax last year if it hadn’t been for uncertainty about the money the council lost by investing in an Icelandic owned back (the final figure turned out to be £700,000).

This year the budget has been prepared on the assumption of a 2.5% increase in council tax, but I was pleased to see that tonight’s papers also show the implications of a smaller 1.5% increase. They demonstrate that a lower council tax rise is possible without putting the council’s medium term financial strategy at risk – exactly as the Lib Dems have argued previously. I hope the Conservatives on the committee tonight choose the lower increase, and I think they should look to go lower if possible given the financial pressure that many residents are under.

The Finance and Performance Management Scrutiny Panel delved into the detail of the budget a couple of weeks ago. I wouldn’t have been surprised if portfolio holders or Directors of Services had used the opportunity to bid for investment in some of the services which haven’t performed so well recently (such as the benefits service which was criticism by the Audit Commission recently).

However whenever I have asked about the level of resources allocated to areas of concern I have been assured that services have the resources they need and that performance can be improved without extra spending (for example by making use of underspends or greater efficiency). This is something I will be monitoring closely, but assuming this is correct it means residents are more than entitled to demand low tax rises.