Conservatives announce budget to ‘withstand the recession’
Frontline services to be protected with £5m ‘credit crunch reserve’
South Gloucestershire’s Conservative administration has unveiled a responsible budget designed to withstand the recession.
The poor economic climate has different impacts on the Council’s budget:
· Income levels fall. This affects income from land searches, planning fees, and leisure centre and sport facilities use;
· Lower interest income from investment of the Council’s cash;
· Higher claims for support. Housing benefit payments are directly affected by the level of unemployment and household income;
· Higher client care costs. It is likely that higher numbers of children will come into the Council’s care, and that the Council will see higher numbers of the elderly seeking home care and residential care, and being able to make lower contributions to these costs;
· Government support through the grant system will fall, as the Government have less resources to devote to local services.
Despite these challenges, some key Conservative budget proposals for the coming years include:
· the second lowest council tax rise in the Council’s history (3.9 per cent) – despite being one of the lowest funded unitary authorities in the country;
· a reserve of £5M to ensure that the Council has the necessary resources to sustain the budgets in the areas that will be under pressure during the recession;
· a larger £5M ‘invest to save’ fund to fund pump priming investments needed to achieve future efficiency savings;
· an additional £2M a year investment in highways and gullies maintenance;
Cllr John Calway, Leader of the Council, said:
“Our responsible budget proposals are designed to recognise and respond to the tough economic times we are now in.
Just as South Gloucestershire households are tightening their belts, so is their local council. We have already announced ambitious efficiency savings targets and this budget proposes to increase the amount of investment needed to achieve these future savings.
Our ongoing efforts to reduce waste, become more efficient and improve value for money is how we can deliver the second lowest council tax rise in South Gloucestershire’s history, and at the same time build up a reserve to withstand the pressures that will be put on certain budgets during this recession.
Our economic action plan will also consider other measures that the Council can take to help South Gloucestershire households and small businesses.
He added:
We are also determined to provide better services to our residents and respond to their priorities. This is why we are proposing to more than double the investment in the maintenance of our roads, footways and cycleways.
This year will also see the Council fund 5 more PCSOs to help tackle crime and anti-social behaviour, further expand our network of plastic bottle recycling banks and put even more resources into developing community transport.”
The Conservative budget proposals will be approved at a Cabinet Meeting on 2 February and then debated by the whole Council on 18 February.
