Tax 'shock' as councils fight legal battle

Two councils are fighting a million-pound legal battle with each other in a row over a village hall.

South Norfolk Council is claiming it was given substandard advice by the legal arm of Norfolk County Council.

It stems from a troubled building project which could leave residents in the area paying an extra £100 in council tax.

Neither party would comment because of the ongoing court proceedings.

Both councils are at loggerheads over Easton Village Hall, which has faced setbacks since work began several years ago and is now over budget.

In High Court documents obtained by the BBC, South Norfolk Council described how County Hall's legal arm, NP Law, drew up what is known as a Section 106 agreement.

This is a legally-binding document which lays out conditions arising from a development within a local community.

South Norfolk Council claimed NP Law did not make them aware the agreement included an obligation to fund the village hall.

The court documents state South Norfolk Council had to pay out just over £1m towards the project in grants - because it found itself legally compelled to do so.

South Norfolk Council is now seeking compensation from the county council to recover this amount plus legal costs.

The village hall, which still has not been completed, is part of a wider scheme to build hundreds of new homes in the area.

The court claim has cost South Norfolk Council at least £40,000 so far.

The county council did not disclose the amount it had spent on defending the action, when asked by the BBC.

Easton Parish Council took on the project and received just over a million pounds in two grants from South Norfolk Council.

This is the money South Norfolk Council said it wants back from the county council.

The village hall construction was forecast to cost £1.5m, but has been beset with cost overruns.

The parish council then took out a loan of £500,000 to finish the work, which it is now struggling to repay.

A meeting last night heard how it is now considering seeking an extra £100 on the council tax of local Band D properties to pay this off.

One of the parish council members, Des Fulcher, described his shock at the news of the legal action.

He said: "Taking the county council to the High Court just seems a bit crazy and a bit wrong. Think about the waste of taxpayer's money."

He added: "They should be supporting Easton Parish Council to straighten things out, not arguing in the background".

Fulcher said local council tax payers could potentially face a 200 per cent plus rise in their precept, which is the amount of money the parish council requests from them.

Most of the current parish council members were not in post when the loan was made.

It has previously been reported there remains a large funding gap in the community centre project.

Easton Parish Council said this had left them in a “dire” situation and warned it could “go bankrupt” if a solution is not found.

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