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Council announces plans to increase council tax by 3.95% to balance budget

Wednesday 30th January 2019 Bath Echo News Team Bath Echo News Team Politics

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Bath & North East Somerset Council’s Cabinet has set out its proposal for balancing their budget and meeting increased demand to support the most vulnerable, by increasing council tax by 3.95%.

The Guildhall building in Bath

The Guildhall building in Bath | Image courtesy of B&NES Council

B&NES Council says that though it is increasing, local council tax rates are some of the lowest in the region.

The cabinet is proposing a general council tax increase of 2.95% to enable the local authority to deliver a balanced budget, as well as help meet the rising demands on adults and children’s services. This equates to an increase of £39.76 per year for a Band D property.

The increase is in addition to the 1% social care precept, which is ring-fenced to support Adult Social Care services. This is equivalent to an increase of £13.47 per year on a Band D property.

With the general 2.95% increase, and the further 1% for social care, the yearly rise totals £53.23 on a Band D property.

The proposal comes as the council faces reductions in government funding. It means the council must prioritise what it spends, to ensure it continues to meet its financial and social challenges, as well as supporting the wellbeing of residents and local economy.

Underlying demand for Children’s Services and Adult Services will cost a further £6.6million in 2019/20, before savings and once-off grants are taken into account.

The council has already saved £55.4m over the past five years, and a further £17m is expected in 2018/19 – giving a total of £72.4m savings over the past six years.

Councillor Charles Gerrish, Cabinet Member for Finance and Efficiency said: “The council tax we are proposing is among the lowest in the region and it allows us to deliver a balanced budget which means that the council’s reserves are not being used to meet the increasing demands of on-going expenditure.

“However the scale of the financial challenge means some fundamental changes will be required to the way in which services are delivered and the way we work with our residents.

“It means we will continue to make efficiency savings as well as increase our commercial income in order to establish a core of quality services that can be sustained into the future.

“This is a responsible approach for the long term and is in the best interest of the council and its residents.”

Councillor Tim Warren, Council Leader, added: “Like all local authorities we are facing some very tough decisions however Bath and North East Somerset remains an attractive and vibrant area with a strong economy that attracts investment and we are working with partners like WECA to ensure we secure more homes, employment and the right infrastructure so we can improve life chances for local people.

“We are also lobbying central government for powers to introduce a levy on local tourism and short-term holiday lettings, and we are seeking compensation for the loss of council funding for student households and these issue are now gathering pace nationally with the Local Government Association supporting these proposals.

“And we have set up our own housing company, Aequus Construction Ltd (ACL Ltd), to invest in new housing for Bath and North East Somerset, to both deliver new homes and generate income for the council.”

By 2020/21, Revenue Support Grant (RSG) received from central government will have reduced to zero – from £21m in 2015-16.

This comes in the context of challenges such as the rapid growth in the number of both vulnerable young people and older people needing social care support – with 82p in every £1 spent by the authority going to adult and children’s services.

A budget report before cabinet on 6th February also outlines proposals for capital investment which would see investment in:

  • Rural affordable  homes schemes;
  • Extra care housing and a shared housing initiative for young people;
  • £1.15 million for Disabled Facilities Grant to help people live independently in their homes;
  • £3.666m on highway maintenance;
  • £1.61 million of highway improvements;
  • £1.2m on renovated  site for additional education provision for secondary age pupils;
  • Almost £800,000 over two years to replace the passenger transport fleet for home to school and social services needs.

For more details about the budget proposals, visit: https://democracy.bathnes.gov.uk/ieListDocuments.aspx?CId=122&MId=4662

The proposed budget will be considered by the council’s cabinet on 6th February. The council’s final budget will then be considered by councillors at a full council meeting on Tuesday 19th February.

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