DRAFT budget proposals for the next five years to 2027 put together by Stratford District Council are out for public consultation.
They include a proposed council tax increase of £5 per household, the maximum allowed, taking the district’s council tax share on a Band D property from £149.12 per annum to £154.12.
Although the collecting agent for Council Tax, the District Council only receives 7.5 per cent of council tax paid by residents. Warwickshire County Council receives 76.6 per cent, the Police 12.6 per cent and Towns/Parishes 3.3 per cent.
This means the District Council only receives just under 8p of every £1 paid in Council Tax to provide services.
Adding to the uncertainty over the future is the lack of clarity from central government on how much it is prepared to give to local authorities like Stratford district and Redditch borough.
Government funding has been confirmed for one year only and is broadly in line with 2021/22 figures.
Beyond 2022/23 the future level funding is unknown.
“Unfortunately, we still have no certainty about the long term prospects of support from central government,” said Council Leader Councillor Tony Jefferson.
He added that given the current economy uncertainty a ‘prudent’ approach would enable the authority to be in a better position to cope with any unexpected shocks.
“Until we receive greater clarity about our longer term financial position, we have endeavoured to protect the provision of services to residents for next year,” he said.
“Although we are expecting to make significant savings through our ambition to merge with Warwick District Council, the budget in future years will be extremely dependent upon the level of support from Government.
“The details of the Government’s Spending Review later this year will, therefore, be crucial for the longer term provision of services.
“The world has changed, continues to change and we have to continually adapt to that changed world.”
Inflation is currently running above the Government’s target and will prove to be a major pressure on both contracted service and employee budgets.
Whilst the Stratford district budget contains an inflation allowance of four per centfor contracts in 2022/23, if it doesn’t return to more desirable level in a relatively short time frame, this will generate additional budgetary pressure across the duration of Medium Term Financial Strategy.
To view the proposals visit: https://www.stratford.gov.uk/consultation-performance/proposed-budget-amendments.cfm
