A balanced budget, designed to encourage economic growth and efficiency and support the vulnerable following the pandemic, is to be proposed by the Council's Cabinet.
Cabinet members will consider a proposal to increase council tax by 1.99% alongside an increase of 2% for the adult social care levy to safeguard and protect services, when they meet next week (Thursday, February 25).
The council has already had to deal with £83.5 million of government cuts since 2010 and faces significant financial pressures to its social care services. The number of children the council is responsible for and the complexity of their needs continues to increase. Together with increased demand for adult social care, this has meant a further £4.4 million is required next year. The Council must ensure services are funded on a sustainable basis to continue providing the support required by our most vulnerable residents.
The increase would mean a Council Taxpayer in Band A would pay an extra 42p per week for Council Tax and 42p per week for the adult social care precept.
However, the Council is also aware of the increased economic vulnerability of some residents due to the coronavirus pandemic and is therefore proposing to provide additional support to those on the lowest incomes in the borough.
The council has been allocated some one-off funding by the government in recognition of the increased cost of providing local council tax support (LCTS) and other help to economically vulnerable households due to the impact of the pandemic. This one-off funding will be used next year to cater for the anticipated increase in caseloads and also to provide additional financial protection for the lowest income households.
The council is proposing to further reduce council tax bills for all local council tax support recipients of working age by an additional £75 which is anticipated will provide additional support to approximately 13,000 residents on low incomes.
The impact of a criminal cyber-attack on the council in February last year and the Coronavirus pandemic have also had a major financial impact on council budgets. And despite one-off provision from the government this year, it is still unclear what the true impact of the coronavirus pandemic will be. Discussions with government are also continuing regarding financial support for the council following the cyber-attack.
Cllr Glyn Nightingale, Cabinet Member for Resources at the Council, said: “While the government's financial settlement is reported to deliver a 4.6% increase in spending for local government, 87% of that increase assumes that all councils will increase Council Tax and the adult social care precept to the maximum levels they have set. We are not proposing to do that.
“No councillor wants to put up Council Tax, but we have to ensure the council is sustainable and a balanced budget is in place to protect and invest in key frontline services, support the vulnerable and look after the adults and children in our care.
“The pandemic has shown how important it is that the Council is ready to help those most in need and this will continue into the future. Our focus will be on the services our residents need and expect.
“At the same time will continue to target help to those that are least able to pay and propose to reduce council tax by a further £75 for those most in need. It is estimated that this will provide additional support to 13,000 residents on low incomes in the borough.
“It is important that the area recovers from the economic impact of the pandemic and our capital investment plan for the next four years aims to help create jobs and new businesses. It will invest to provide more opportunities to raise local skill levels so that economic prosperity is shared right across the borough.
“Residents can also be reassured that money will not be wasted. We will continue to monitor all expenditure and ensure the Council is run effectively and efficiently. Fundamentally, it is vital the council has the resources to do the job local residents expect from their elected representatives."
The budget will be discussed at a special cabinet meeting on Thursday 25 February in the morning. A budget will then be presented for approval at a special borough council meeting for all councillors in the afternoon.