Bosses mull over council tax rise amid soaring costs

The authority said rising inflation is expected to add £25million to the authority's costs next year, while additional pressures will mean £45m will need to be found to balance the books.

A decision on whether to increase council tax by the 4.99 per cent allowed without a referendum is expected to be made in the coming weeks.

A report on the council's financial strategy over the next five years says costs are expected to rise to £132m a year by 2027-28.

It says a "range of significant risks" need to be "carefully monitored and managed", with global economic pressures and increased demand in some services areas adding to the pressures.

According to the report, "significant challenges ahead", with around two-thirds of next year's total budget of £587m set to be spent on children's and adult social care.

On the potential to hold a referendum to increase council tax by more than 4.99 per cent, the report says: "This is not a decision that would be taken lightly, while it remains an option, significant sums of money would be required to hold a referendum and, by its very nature, the outcome of a referendum is uncertain."

Ian Parry, Staffordshire County Council’s finance chief, said the authority would continue to invest in the future despite rising inflation and energy costs.

He said: "Some detail has still to be resolved when we receive the final figures from Government and we will think long and hard about the best way forward.

"But despite so much of our budget being spent on one or two areas, we can already promise widespread investment for the future."

The council says it has delivered £115m savings in the last six years, while the £410m growth plan, launched in 2014, has delivered more than 11,000 jobs and enabled over 4,500 houses to be built.