Council tax rise of almost five per cent agreed amid warning situation is ‘not sustainable’

A 2.99 per cent hike in basic council tax and an additional two per cent earmarked for adult social care are both proposed in the authority’s budget report for 2024-25, which was agreed by cabinet today (February 7).

If approved by full council later this month, the owner of a band D property will pay an additional £85.11 a year.

BMBC expects to spend an extra £35 million on day-to-day running costs next year, and said that even with additional government funding, it cannot meet the costs of ‘increased demand’.

During today’s meeting, councillor Sir Steve Houghton, leader of the council, said that BMBC is in a ‘sound position’ this year – but warned that the way local authorities are financed is ‘not sustainable’.

He added: “It is getting more difficult year on year, as we can see across the country and even with some of our neighbouring councils to absorb the kind of cost increases and demand pressures.

“There will have to be a change to the way the local government finance system works.

“It’s not sustainable in the way it’s currently going.”

Councillor Robert Frost, cabinet spokesperson for core services, added: “It will become increasingly difficult to balance the budget in future, as the demand and cost of services continues to outstrip available funding.”

The government said it is giving £64.7 billion to local government in the next financial year, an above-inflation rise of 7.5 per cent on the previous year.