Bath & North East Somerset Council’s Cabinet has set out proposals to increase efficiency, protect frontline services and keep Council Tax as low as possible, with an increase of 1.25% expected for the future.
Since last month’s announcement on local government funding, which saw a larger reduction in Government grant than had been anticipated, the Council has been working to find an additional £3.6 million worth of savings in the coming year, with further savings required in future years over and above the £38 million it had already been working to achieve over the next four years.
As well as changes to the way in which the Government calculates how much funding it allocates to each local authority, the Government has also confirmed that it will be ending the ‘Council Tax Freeze Grant’, which had enabled Council Tax bills to be frozen for the past five years.
As a result of these changes, and in addition to the new 2% social care precept announced by the Government last autumn, the Cabinet is proposing a general Council Tax increase of 1.25%.
This will enable the authority to deliver a balanced budget and protect the main front-line services residents receive from the Council, as well as help meet the rising cost of caring for an aging population.
Councillor Charles Gerrish (Conservative, Keynsham North), the Council’s Cabinet Member for Finance & Efficiency said: “The Council is currently facing the biggest financial challenge in its history, with a combination of significant reductions in Government funding and increasing demand for services such as social care.
“This has inevitably resulted in some difficult choices over which services to prioritise most. However, our aim throughout this process has been to maximise efficiency and grow income through investments so that we can better protect front-line services and keep Council Tax levels as low as possible.
“Unlike previous years, the Government is no longer providing an additional grant to enable Council Tax bills to be frozen.
“However, we believe that the Council Tax rise we are proposing will still be among the lowest in the country, something which has only been achieved by undertaking a thorough root-and-branch review of the Council’s finances.
“We have always said that raising Council Tax is last resort for us, and the vast majority of the savings we are having to make are being achieved through increased efficiency, service innovation and back-office savings, enabling front-line services to be protected as far as possible.”
The Cabinet’s proposals will enable the protection of core front-line services such as:
- Children and youth services, including Children’s Centres and child protection services.
- Adult social care services.
- Street cleaning, waste recycling, environmental health services, and public toilets.
- Planning, regeneration and business support.
- Leisure services, including planned investment in new leisure facilities in Bath and Keynsham.
In total, of the savings the Council is having to make this year:
- £6.10 million is being achieved through increased efficiency and service redesign;
- £3.024 million is being achieved through finding new and innovative ways to grow income;
- £2.584 million is being achieved through refinancing and reducing cost pressures.
A 1% rise in Council Tax raises approximately £750,000 for Bath & North East Somerset Council.
However, local Liberal Democrats are warning that the increase in Council Tax will not meet the budget gap and that cuts to public services and increases in fees and charges are to be expected.
Lib Dem Group Leader Dine Romero (Southdown) said: “This budget announcement is short on detail and long on passing the buck.
“What is particularly concerning is that the Cabinet appears to be looking at only the next financial year.
“The next four years will see over £40 million of cuts to Council budgets and the Conservatives have been very secretive about where these will fall.
“Residents will have to expect cuts and changes to public services plus increases in fees and charges, on top of an annual Council Tax hike.”
“This clearly shows the difference between the coalition government, which protected residents from Council Tax rises, and an unfettered Conservative government which has the knives out for local government.”
Councillor Andy Furse (Kingsmead, Lib Dem) is Lib Dem spokesperson on the budget.
Andy commented: “The 2% so-called ‘precept’ for social care is a Council Tax increase in disguise. When added to the 1.25% general Council Tax increase announced today, the total is a 3.25% rise in the coming financial year.
“This will come as a nasty surprise to local residents – many of whom will not be receiving any pay increase – after rates were frozen for 4 years under the Liberal Democrats. ”
“Liberal Democrats in B&NES recognise that our social care system is under a lot of pressure and that the added flexibility to draw in more funding is hard for Councils to refuse.
“Nevertheless, it cannot be left solely to local taxpayers to fix our chronically underfunded care system. This is a government sleight of hand to offload an expensive responsibility.”
Bath’s Conservative MP, Ben Howlett said: “I am pleased that given the tough funding decisions that the Council has to make that it has decided to support the most vulnerable people first.
“In the Conservative Group Council manifesto they promised to re-orientate the way that the Council thinks about providing services, by protecting vulnerable people first not last.
“Contrast this year’s budget to the 2015 Budget put together by the last Lib Dem-run council where they decided to cut children’s centres. This Conservative Council’s priorities speak for themselves.”
