Staffordshire County Council could increase its share of council tax bills go up by almost 5%.
The authority said the increase would help tackle financial challenges it faces.
The council said it plans to invest an extra £9.5million in children’s services, as well as an additional £2.8million to address an overspend on support for those with special educational needs and disabilities (SEND), as part of its latest budget.
High inflation rates over the past year are also continuing to put pressure on the authority’s finances, Cllr Ian Parry told fellow cabinet members this week.
An additional £22.3million has been earmarked towards inflation costs, while almost £650,000 extra has been added to the home to school transport budget due to rises in fuel prices.
Despite these challenges, the councillors were told finances are in a stronger position than others across the country fighting to avoid bankruptcy.
But if proposals are approved by full council next month, the cost for a typical Band D property will rise by £73.41 to £1,533.64 for the year.
Cllr Parry, cabinet member for finance and resources, said:
“The aim is to balance the ambitions of this council with a clear commitment to deliver value for money for residents and businesses and to live within our means.
“We need to strike a balance between ensuring we stick to the pledge and ensure we continue to invest in those things which support the residents of Staffordshire.
“Despite the well-documented challenges facing the local government sector overall, it’s thanks to the long term planning, the creative, imaginative and courageous change that this council has gone through and the careful management of our resources means this council remains financially stable.
“Since February, inflation has not reduced as quickly as was hoped and remains higher than the 2% target. In addition interest rates have risen higher than anticipated and are likely to stay at that level for longer than expected.
“Underpinning the planning framework is the council’s aim of setting a good and balanced budget – and we do meet the requirements of a good and balanced budget. The integrated performance reports which cabinet receive each quarter show a picture of relative financial stability during 2023/24, except for areas in children’s services and SEND transport.
“In addition the High Needs Block, which is funded from the Dedicated Schools Grants is also overspending due to increased demand. These are the key areas of overspend-type pressure that we are addressing at the moment.
“The council has a proven track record however of delivering cost reductions, with £127million worth of savings having been identified and delivered in the past seven years up to 2022-23.”
Cllr Ian Parry, Staffordshire County Council
The proposed 4.99% council tax increase includes 2% specifically for adult social care.
The authority said it is also committed to making improvements to children’s services following a critical inspection report from Ofsted, which was published earlier this month.
“Transformation of the children’s system is a key priority and a key programme within the council. It’s set against a much higher demand for children’s services, with increasing numbers of children in our care.
“Therefore an additional £9.5million will be added to the children’s services budget for 2024-25 to fund the increase in cost of placements and to fund part of the transitional programme.
“The existing savings still remain to be delivered and the additional budget reprofiles these savings over the period of the medium term financial strategy – we have not lost sight of the expectation of savings through the transformation of the children’s system.
“Increasing numbers of health and care plans are placing further pressures on SEND services including home to school transport. Additional funding of £647,000 has therefore been added to the service budget to fund inflationary pressures on fuel and £2.8million has been added to address the overspend arising from the 2023-24 period.
“We have some projected pressures and cost-reduction options we need to address. The total amount of extra funding allocated for inflation next year is £22.3million, which is in addition to the £26million already added last year.
“Adult social care pressures continue to dominate the budget process, particularly around the care market and the national living wage, which has increased pipeline costs for adult social care for the council.
“These pressures have been largely offset by the additional precept facility and Social Care Grant.”
Cllr Ian Parry, Staffordshire County Council
