Stafford council tax set to rise by almost two per cent
Stafford borough residents are set to see their council tax go up by nearly two per cent next year.
The tax rise proposed by Stafford Borough Council in its 2021 to 2022 budget is in line with 1.9 per cent increases during 2020 to 2021 and 2019 to 2020.
But a report to this month’s cabinet meeting said a reduction in the amount of council tax collected for this year (2020/21) was expected as a result of the Covid-19 pandemic.
The council’s income has also taken a hit this year after national lockdown measures led to a drop in takings from car parking charges. There have also been additional costs to the authority for providing support services such as emergency accommodation for rough sleepers.
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The cabinet report indicated the council was facing a loss in income of more than £2 million this financial year, as well as more than £1.5 million in cost pressures. And further income losses and pressures are expected in the next three years to come.
The report said: “The council faces a period of financial uncertainty reflecting the ongoing impact of Covid-19 and fundamental changes to the Local Government Finance Regime. The pandemic has had a major financial impact on the authority with a loss of income and additional cost pressures and this is likely to continue through 2021/22.
“No specific details exist in relation to the levels of funding the council will receive from the Government for the new funding scheme with effect from 2022/23. The proposed new funding regime has been delayed a year and the council awaits the outcome of the Spending Review and Local Government Settlement for 2021/22 budget.
Impact
“The position with business rates is similarly unclear and although the introduction of the 75 per cent Business Rates and Fair Funding has been deferred until 2022/23 it is not clear whether there will be a reset of business rates in 2021/22 in advance of the new scheme.
“The council have received four tranches of grant to deal with the immediate cost pressure impact of Covid-19 amounting to £1.786 million. The Income Guarantee scheme is based upon the council bearing 25 per cent of income losses and the Government 75 per cent subject to each council being required to bear an annual five per cent volatility allowance based upon their total budget for sales, fees and charges for the year.”
Cabinet members approved the draft budgets and capital programmes for 2020/21 – 2023/24, which cover the council’s leisure, community and health, environment, resources and economic development and planning services. Each draft budget and capital programme will now be considered by a scrutiny committee in the coming weeks.
Councillor Mike Smith, cabinet member for resources, said: “There has been some improvement in the financial position as opposed to the report presented a month ago – substantially additional income in respect of housing benefit overpayment subsidy. We get this payment if our overpayments are below a threshold and not our fault.
“We’re not yet in a position to accurately quantify the effect of the Government grants recently announced. These will be worked on over the next month and we expect clarification by the third week in December.
“I fully expect it will show an improvement in the financial position, but we decided to opt for somewhere between the best case and the worst case, so it’s not an indication we can rest on our laurels – far from it. Covid will have a severe impact on our finances.”
