An uncertain long term financial picture for local authorities means council tax bills in Lichfield and Burntwood will have to go up, a meeting has been told.
The cabinet at Lichfield District Council approved proposals to raise its precept by 1.5% at a meeting last night (8th February).
The plans were unanimously supported by the leadership group, which was told a planned multi-year financial settlement from central government had not materialised.
Cllr Rob Strachan, cabinet member for finance, said that he had avoided pushing on with a previous strategy to increase by the maximum 2.7% in order to show residents that the council was playing its part in recognising the cost of living challenges households are facing.
But he insisted an increase was needed in order to protect the long term financial health of the local authority.
“We are all very aware of the increases nationally in the cost of living and the rises recently in energy prices.
“The published rate of inflection is rising and is expected to remain at around 7% for much of the year. Our partners in the top tier of local government are faced with crisis in funding of adult social care, while the Staffordshire Commissioner is trying his level best to protect policing and fire services.
“With that in mind, our medium term financial strategy departs from the previous model of a maximum increase every year.
“We do face our own cost pressures and have our own projects to fund, but we can meet some of those pressures from within our existing reserves.
“It may not represent the largest change for our residents but I hope it will be seen as Lichfield District Council playing its part and recognising times are tough.
“We are taking a mature approach.”
Cllr Rob Strachan, Lichfield District Council
The council had hoped to secure a multi-year funding agreement to help it plan the future of its finances, but only a single year deal has been forthcoming.
The news means that while the local authority continues to face long term uncertainty, it has received a short-term £2million “windfall”.
Fellow cabinet member Cllr Andy Smith said with the additional funding and the scale of the money already held by Lichfield District Council he would have liked to see a more drastic action on council tax bills.
“I would like to have seen a zero increase given we have almost £8million of reserves not earmarked to do anything and a lot more earmarked for other stuff.
“What is the rationale if we have a strong reserve in terms of why we’re looking to increase council tax?”
Cllr Andy Smith, Lichfield District Council
But Cllr Strachan said the boost from the short-term funding agreement was already earmarked to support other capital projects.
And he insisted there was a long way before the council could rest on its financial laurels.
“Council tax this year is a really challenging balancing act as we also face inflationary pressures and have projects to fund.
The uncertainty we see with forthcoming changes to how we are funded means we actually still project an over £2million funding gap by the end of the period of this mid term financial strategy.
“I think it would be remiss of me not to balance that out by still protecting our position with a small increase.
“I hope people will see I’m trying to find that balance to make sure we have the resilience we need while taking the pressure off them.”
Cllr Rob Strachan, Lichfield District Council
The decision on the increase in council tax will be taken at a meeting of the full council on 22nd February.
