Stafford Borough Council budget is approved

One Labour member said that two decades of smaller council tax increases and freezes – and even a rate reduction one year – meant that the authority would face difficulties in raising more funds in the years to come.

Borough council tax is set to increase by 1.9 per cent in April, meaning Band D households will pay £165.38 to the authority in 2022/23. This is an increase of £3.08 for a Band D propert,y compared to the 2021/22 council tax bill and a rise of around 6p per week.

Deputy leader Mike Smith, who presented the budget report at Tuesday’s meeting, said: “Members will know that there are predicted shortfalls in forecast income against forecast expenditure in the next two years. This is of some concern and discussions are currently in progress to start identifying how we can ensure the budget position will be in balance in the medium term.

“Whilst not being complacent it is worth emphasising that the cause of the projected shortfalls is the anticipated impact of the Government’s new financial regime. Very little is known about the Government’s thinking in this regard.

“The uncertainty we had last year remains, but it has been postponed. This will have a significant impact on our budget for next year.

“Given this uncertainty, it is recommended that rather than recommending budget savings now that could have a detrimental impact on service delivery, it is better to monitor the Government’s policy position and keep the forecast under review.

“Ideas will be identified in the coming months which can be implemented in the following years, should that need arise. Our chief executive is now also over at Cannock (Chase Council) and one of the areas we will need to explore is sharing more services.”

Labour councillor Ralph Cooke said: “It’s the fourth year running where the Government has only announced a one-year settlement. How on Earth are people supposed to do any medium-term planning when the Government will only give you a year at a time? We also know there is a lack of clarity for a number of future incomes – business rates for example.

“It looks as though the storm is going to break in 2023/24 and 2024/25 because at that point, according to these figures, we shall have to transfer £1.692m and £1.851m from reserves and balances respectively to finance the shortfall. This is a forecast, these are not the exact figures, but it does not look terribly good.

“The controlling group keep crowing about presenting a balanced budget as if this is some great achievement which it takes them ages to get their head round. Well actually they have to produce a balanced budget by law. They can’t say ‘we’re not going to produce a balanced budget, we’re going to have a deficit budget’ because the roof would fall in on their heads. They have to do as they’re told by law.

“The problem the controlling group is facing in 2023/24 and 2024/25 is at least to some extent a product of their own making. They’ve been in control since 2003."

Councillor Cooke added: “This is all to do with the words ‘tax base’. Our tax base at this time is £48,490.39. You can increase this tax base in two ways; you can increase the number of houses or you can increase the council tax itself – or you can do both of them.

“If you, on the other hand, flat line the tax base then your tax base and the amount of council tax you can raise by any percentage increase will be reduced.

“You brought this on yourselves because you messed up your tax base. All those years you have been in power you kept raising council tax by teensy amounts, not raising it at all or reducing it.

“And so now, instead of being able to do it incrementally, you now have big jumps in your council tax. Or, as you seem to do, put up the prices all the time and cut your services.

“You’ve messed up your tax base and now you’re facing major problems, which you needn’t have done had you raised your tax base on an incremental basis over the years.”

Councillor Ann Edgeller responded: “If our budget is not to your liking, why don’t you produce an alternative budget?”

The majority of council members at Tuesday’s meeting approved the budget, with a number of Labour members abstaining from the vote.