Households will face tightening their purse strings even further in the new year as Cambridgeshire County Council is proposing a substantial hike in its council tax contribution.
The 2024/5 budget proposals include a 4.99pc council tax rise, the maximum increase the government allows before there has to be a public referendum.
A Band D household currently pays £1,542.87 a year.
If the maximum increase goes ahead, the council says these payments will increase by £76.95 a year - the equivalent of £1.48 per week.
The county council estimated its net costs of providing services in 2023/4 as £501m, but this is set to increase by £31m to £532m in 2024/5.
The council says the tax hike is because of increased demand in services, inflation and the ending of some government grants.
Even if it does go ahead, there will still be a £2m funding gap in the 2024/5 budget.
It is being described as "the toughest year to set a balanced council budget" and two per cent of the proposed 4.99pc council tax rise will go towards adult social care.
Children’s social care, home to school transport and provision for youngsters with special educational needs or disabilities are among the areas that have seen a surge in demand.
- a £57m investment to sustain children’s and adult social care services;
- ensuring adult care providers earn the upcoming real living wage increase of £12 an hour;
- £3m to continue providing holiday food vouchers for eligible children; and
- £2.2m to deliver anti-poverty initiatives.
Meanwhile, £17.6m of savings have been identified through initiatives such as moving to LED streetlights, reviewing the most expensive children’s placements and school transport costs, and looking into income generated from parking charges.
“But we have legal duties and moral responsibilities for people in this county.
“We were promised a fair funding review for local authorities by the government – it hasn’t happened.
“We were promised social care reforms that would fix the challenges in the sector by the government – it hasn’t happened.
“I am so fed up with being promised jam tomorrow by the government. We have to make sure we are being responsible and making prudent decisions for the long term.”
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The council says a £64 billion funding package the Government proposed for councils the week before Christmas does not cover the demand and inflation it faces.
Reaction to the proposed budget from opposition leaders has been mixed.
He said: “Given the challenges we face generally with the cost of living and increases in costs in areas such as social care and transport, I really don’t think we’ve got much alternative.
“What I'm particularly pleased to see is a level of investment in young people’s mental health, which I feel is a very important issue at the moment.”
He said: “We are not surprised the joint administration is already calling for the maximum possible tax increase, as it is their default position.
“However it is their political decisions, not statutory duties that are causing a shortfall in funding.”
He also said the Conservatives will be putting forward an amendment to the proposals in February.
Cllr Elisa Meschini, leader of the Labour group, was approached for comment.
The 2024/5 budget proposals will be debated at service committees throughout January.
- Share your thoughts on the consultation at https://rb.gy/vs8cf6 on the Cambridgeshire County Council website. The survey closes at midday on Tuesday, January 16.
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