Rotherham Council tax: 4.5 per cent hike in the face of 'significant financial pressures' from Covid pandemic

This would mean residents in a Band D property will pay an extra £72.66 per year, bringing their annual council tax bill to £1,687.24.

The rise will raise an extra £120.6m to help RMBC pay for ‘valuable frontline services, particularly services for vulnerable children and adults at a time when demand for these services continues to increase’.

RMBC's 2022/23 budget proposal states that the council has had to make more than £200m in savings, due to the impact of austerity measures, and ‘the impact of the 10 years of significant reductions in Government funding that followed’.

This, combined with additional expenditure and lost income caused by the Covid pandemic, has led to RMBC proposing to raise council tax to cover its services.

The costs are being covered in the current year by grants from the Government, states the budget report - but the financial impact of Covid is expected to ‘exceed the funding provided by Government’ in the coming year.

MORE: Sheffield residents set to be hit with council tax increase as authority faces £98 million black hole from Covid

The Council’s budget proposals include a revenue budget of almost £260m – the money the Council uses for providing day-to-day services – and capital expenditure of £244m, which is for one-off costs for equipment or investment in longer-term developments.

Rotherham Council' s cabinet is asked to recommend an increase of 1.5 per cent in basic council tax, plus an increase of three per cent for the Adult Social Care precept.

MORE: How council tax in Sheffield compares to rest of England after maximum rise

Why is this council tax rise needed, and what else is going to cost more?

Adult Social Care

Adult social care is placing a huge pressure on the budget, as the service is experiencing ‘significant pressures that are out of the Council’s control’, due to a ‘rise in complexity of people’s needs’.

The cost of providing adult social care in Rotherham is expected to increase by £11m this year, which will partially be covered by the three per cent rise in the adult social care levy, which will raise an additional £3.4m toward this cost.

The £11m will cover a 1.25 per cent national insurance increase, inflation and market and supply chain issues, which are ‘driving cost increases’.

The extra precept will cover ‘some of the additional costs’ of adult social care, along with a £14.7m grant from the government.

Education

Demand for pupils with special educational needs and difficulties (SEND) has increased nationally - in Rotherham, the number of youngsters receiving additional support via an Education, Health and Care (EHC) Plan has more than doubled since 2014, increasing from 1,101 on December 31 2014 to 2,588 on December 31 2021.

Finance officers have implemented a four year financial recovery plan, as the authority is facing a deficit of £21.8m to pay for education.

Almost £50m of the £286m schools grant is for pupils who require specialist education in Rotherham, and the council is working with the Department for Education to secure additional funding.

An extra £200,000 has been budgeted to develop services for children with Special Educational Needs.

Care fees

Of the 1,643 residential and nursing care home beds, approximately 35 per cent are financially supported by the Council.

Fees will be increased to raise £1.5m per year to cover wage increases for staff, Covid related costs such as PPE and hikes in energy bills and insurance costs.

Residential home fees, which are currently set at £504 per week, will rise to £550 - an increase of nine per cent.

Nursing care fees will also rise from £518 to £565 per week.

What has the council proposed to help residents?

Several prize freezes on services are proposed, such as parking charges, to attract visitors to the town centre.

Taxi licensing fees are also proposed to remain the same, to ‘support a now struggling market’, and prices for the Civic Theatre and market stalls will not increase.

Almost 14,500 of all households of working age will receive additional council tax support ‘top up’ payments of up to £112, to help with the rising cost of living.

£130,000 is proposed to support families where children are at risk of going into care, and keep them together where it’s safe to do so, and £180,000 has been budgeted for youth services.

Cash has been set aside for several projects to improve the borough, such as £750,000 for road safety measures, £250,000 for CCTV, £648,000 for electric vehicle infrastructure, and £95,000 for anti-climb barriers at Ulley Country Park.

What has the leader of the council said?

Councillor Chris Read, Leader of Rotherham Council, said: “The last ten years have seen a combination of rising costs and reductions in government funding, meaning that council services in Rotherham like everywhere else in the country have had to be reduced and cut back.

"But because we have taken the tough decisions over that time, we meet these challenges in a stronger position than many other councils now find themselves in.

"That means that we can put money into residents’ priorities: safer streets, a cleaner environment and supporting our children and young people. We want all our neighbourhoods to look and feel better for everyone who lives in them.

“Whilst the Council’s finances remain challenging, we still have savings to make, and the rising cost of inflation and National Insurance challenges us just as it does local households, we also need to live up to our commitment that no one should get left behind.

"That’s why we are prioritising funding for social care and helping to increase the pay of vital frontline social care staff, including hundreds of personal assistants, who deserve much more than just the legal minimum.

"It’s why we’re reintroducing grants for low-income families to help with the cost of school uniforms, adding to our existing plans for free school meals during school holidays. And why our Council Tax Support Top Up will give extra protection to many of the families who are most vulnerable to the rising cost of living.”

The Council’s budget proposals will be considered by Cabinet on Monday, February 14 and go before Full Council on March 2.