Council tax hike to plug £43m Covid black hole
TAXPAYERS face a rise in their bills, according to a budget approved by Bury council for the year ahead.
The local authority’s finances will be hit to the tune of £43.5m over the next three years because of Covid-19 – a looming concern as the plans were decided upon.
Alternative budgets proposed by Bury council’s main opposition parties were voted down as the Labour-controlled council voted though plans in February, which will see council taxpayers in Bury face a 4.7 per cent rise in their bills in 2021/22.
In the financial package voted through by councillors, cuts announced include the closure of civic venues, as well as a £73m injection to three centres across the borough. Last-minute changes to their budget included halting the planned closure of Ramsbottom Civic Hall and a pledge to increase the wages of lower paid local authority and agency staff employed by the council to at least the national living wage.
Councillors were told the authority faces a shortfall of £21m in the next financial year – around half of this shortfall will be met by using reserves, with the rest made up by cuts to services.
Council leader Councillor Eamonn O’Brien said: “Covid has had a significant effect on our budgets, and will continue to do so for years to come. This current year, covid has cost us £46m, towards which we have received £36m in government help.
“That still leaves us with £10m to find, and we estimate the shortfall will be a further £33m over the next two years. Despite these challenges, we have announced firm measures to help the local economy, and our citizens.”
Councillors have been considering savings in adult social care, which will save £9m over four years, including more emphasis on community care.
There also savings of £1.2m earmarked in children’s services.
Proposed ‘transformation’ measures would save £5m through closure of council buildings and more agile working, self-service and ‘digital first’ measures, and promoting more self-care at neighbourhood level.
The budget also includes regeneration capital investment, with Radcliffe, Prestwich, Bury and Ramsbottom set to get around £73m over the next few years.