Cabinet supports budget proposals for 3.99 per cent council tax increase

Thursday 14th February 2019 10:09 GMT

Cornwall Council’s Cabinet has agreed to a proposed 2019/20 budget which it says will protect vital frontline services for the most vulnerable residents in the Duchy.

The budget proposal will see council tax put up by 3.99 per cent - an extra 88p per week for a Band B property.

A final decision on the budget will be made at the full council meeting on 26 February 2019.

The proposed budget follows community consultation which saw engagement of over 80,000 residents, and took into account resident feedback to develop the final proposals which include:

  • an extra £17 million over the next four years to meet the increasing demand for social care for vulnerable adults;
  • increasing funding for services for vulnerable children and families by 10%;
  • investing an additional £30 million in our roads;
  • putting an extra £10 million into pay packages through the council’s commitment to a genuine living wage for people in Cornwall;
  • directly investing in homes and jobs that people in Cornwall need, with Cornwall Council being the number one area for the  delivery of affordable housing;
  • protecting evening and weekend bus services for our residents and creating one of the best integrated rural transport services in the country with smart ticketing; and
  • almost £30m investment into digital improvements and the wider roll-out of superfast broadband across Cornwall.

The cabinet also agreed the capital programme, which will see more than £1.2bn investment to deliver essential infrastructure, create jobs and support the delivery of quality homes in Cornwall.

The deputy leader of Cornwall Council and cabinet portfolio holder for Resources Julian German said setting the council’s budget and council tax for 2019/20 and planning for the years beyond was challenging.

He said: “We are under no illusions that this is a tough budget. The council will not receive any government revenue support grant after 2022, and Cornwall will need to become increasingly self-sufficient. Instead of government grant, we will be reliant on income from council tax and a share of the rates payable by businesses based in the local area.

“We have looked at other options available before considering the level of council tax. We are taking a different approach to securing services that residents’ value. This budget has a strong focus on delivering innovative ways of supporting the care needs of individuals, giving people appropriate short-term support sooner that will reduce the need for expensive longer-term support services.

“We’ve also saved money within the council by reducing printing and mileage costs, alongside a major transformation project to re-engineer the back office functions at the council.

“In response to feedback from residents during the consultation, we’ve kept council tax at two per cent rather than using the extra one per cent that the Government allows us to raise council tax by. Along with the adult social care levy of two per cent again next year, this means a total increase in council tax of 3.99 per cent, if agreed by full council later this month.

“We do not take this decision lightly; but we believe this will achieve the right balance to ensure those people most in need of support will continue to get the assistance they need, whilst also keeping council tax as one of the lowest in the South West.”

Cllr German said exploration of a voluntary contribution during the budget consultation found about a third of online responses supported the principle, with further work to now be undertaken to see if this might be a future option.

He also said calls for a tax on second home owners and a tourist tax featured strongly in the budget consultation, with the Council closely monitoring developments across the country.

Cllr German said the council would continue to stand up and campaign for fairer funding for Cornwall and called for support from local MPs to make sure that Cornwall does not lose out on grounds of rurality in core local government funding, sector deals, the relocation of public bodies, and affordable housing partnerships.

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