‘Disappointing’ council tax increase on way
Sunderland’s council leader has said it is “disappointing” council tax bills are set to rise by 3% in the city, but warned they have no other option due to Government funding issues.
Sunderland City Council estimates a budget gap of £51million over the next four years due to spending pressures and shortfalls, including unresolved questions over the nationalfundingofsocialcare.
A3%counciltaxincrease,in line with the Government’s assumptions, is part of the planningforthecouncil’sbudgetfor 2022/23.
The City Council cabinet at its meeting at City Hall on Tuesday,December7,received a report looking at the latest financial information ahead of starting their annual budget consultation.
Cllr Graeme Miller, Sunderland City Council leader, said the ongoing financial pressures they face date back 11 years to when the coalition government “started austerity politics”, which are still being experienced.
He said: “It is hugely disappointing that we are having to look at a council tax increase of 2% on core spending and 1% that contributes towards the increase in adult social care costs.
“This directly impacts on our residents and this is 11 years of Conservative governmentandtheuncaringattacks on local authority budgets.”
Proposals to tackle the budget gap are being developed, including ‘service staffing reviews that could see reductions of 60 posts’.
Cabinet also heard how current assumptions are up to £9m of reserves could be used in each of the next three years.
Cllr Louise Farthing, cabinet member for children, learning and skills, outlined how the Government expects councils to increase tax.
She said: “The budget planning at this stage assumes a council tax rise of 3%, comprising of a 2% increase in core counciltaxanda1%increasein the adult social care precept.
“As set out in the Government’s October spending review,3%istheleveltheyexpect, Iwillrepeatthattheyexpect,localauthoritiestoraiselocaltaxestocovertheincreasingcosts anddemandsonlocalservices, in particular social care.”
Sunderland’s Council Tax raises about £16 for every £100 in the budget and is the lowest intheNorthEastregion,chiefs previously said. Further decisions on budget proposals will bemadeinFebruary2022with thebudgetagreedatthebeginning of March.