The Council faces significant financial challenges which will have a detrimental impact on services provided to residents unless they are addressed. There is currently a potential budget gap of in excess of £34m per annum by 2025/26 which could increase to £61m by 2027/28. This is mainly caused by increasing demand for social care for vulnerable adults and children and the rapid rise in the cost of housing for homeless residents. Therefore, the Council is considering several possibilities towards meeting this shortfall and to help protect key services for residents. This consultation considers one such response.
The Council has supported residents who are eligible by enabling them to pay a percentage of Council Tax rather than the full amount. From 2025/26, it is proposed to keep this support, and that those eligible for the support will pay 50% of their Council Tax bill in addition to the Band D entitlement restriction going forwards. This proposed increase from the current 30% will contribute towards reducing the future budget gap, ensuring that the Council can continue to provide essential services in the long term.
These changes would save £2.1m per annum, a saving that could pay for 14,850 households refuse collection, 6 Libraries, maintaining 72 of our 165 parks or 50 per cent of our road maintenance costs.
In addition, the Council is also proposing to simplify the scheme from 2025/26 by:
- Removing the Better Buy and Second Adult Rebate (2AR) elements of the scheme so that entitlement is based on the claimants’ income only.
- No longer applying the earned income disregard to Universal Credit claims as these are now included in the income assessment for Universal Credit.
- Incorporating, which includes the annual uprating and non-dependant deductions, any changes made to the Housing Benefit scheme which would include the two- child limit and to disregard any eligible compensation payments.
In recognition that some residents currently face, or will face, financial difficulties, the Council proposes to increase the Council Tax Support Discretionary hardship fund by £45,000 to £260,000, to directly help those who most need assistance.
The council is seeking your views on how it should assist those most in need at this time and levels of Council Tax Support from 2025/26.
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