Babergh urges Government to fix 'broken' funding for councils
Babergh District Council leaders are calling for the Government to address a local authority funding crisis, as it faces a £1.8million budget gap.
Councillors will scrutinise the draft budget for 2024/25 next week, which includes details of the shortfall and proposals to increase the district’s share of Council Tax bills by 2.99%.
A report to Babergh’s Overview and Scrutiny Committee on Monday 22 January shows the cost of providing its services to residents and communities is expected to rise by £2.5m to £15.12m next year – a 21% increase.
This is mainly due to inflationary pressures, particularly interest rates and salary costs, while there has also been a reduction in planning fees as potential development continues to stall due to the economic downturn.
The Council is increasing fees and charges to reflect the actual cost of providing licences and services. It also continues to engage with local communities over the introduction of new parking tariffs in Sudbury, Hadleigh and Lavenham.
A savings programme is also expected to achieve savings of £557k. However, the council is still left with a £1.8m gap, requiring ‘tough decisions’ to be made.
When the Government announced its annual grants for local authorities in December, it based its forecasts on the assumption all councils would raise their council tax by the maximum allowed.
This would mean a 2.99% increase to Babergh’s element of the bill – the equivalent of £5.46 a year, or 10p a week for a Band D home.
The district’s share is less than 10% of the total bill, with the remainder going to Suffolk County Council, the Police and Crime Commissioner and town or parish councils.
Meanwhile, under the draft budget proposals, Council tenants would see a 7.7% increase in rents to try to keep pace with increased costs, and to ensure the necessary investment in repairs and maintenance across the Council’s social housing stock.
This would mean average weekly social rent increasing by £7.92 from £102.88 to £110.81. For affordable housing, weekly rents would increase by £11.13 from £144.51 to £155.63.
Cllr Ward said: “Any decision to put up bills is not one we take lightly, particularly when people are already feeling the squeeze, and we are determined continue to support those most in need.”
Babergh District Council provides advice and support to those struggling to pay their bills, with a Council Tax reduction of up to 100% for residents with the lowest incomes.