By Anna Whittaker, Local Democracy Reporter
Conservative-run Rushcliffe Borough Council says it will set a balanced budget despite problems including real-term cuts in Government funding.
The portfolio holder for finance at the authority said it has faced “strong headwinds” financially but is still “in a better place than most”.
The authority also says its tax will still be the lowest in Nottinghamshire and in the lowest 25 per cent in the country full council.
The authority’s cabinet approved the budget proposals at a meeting on February 13. The budget still needs to be approved by Full Council on March 7.
In December 2023, research by the Local Government Association revealed that almost 1 in 5 council leaders and chief executives think it is “very or fairly likely” that they will need to issue a Section 114 notice this year or next year due to funding shortfalls.
The Government announced last month that councils across England will receive a £600 million support package to help them deliver key services.
Rushcliffe Borough Council plans to raise the council tax rate by 2.55 per cent, meaning a Band D property will get an increase of £3.93 for the 12 months from April 2024.
It means a Band D property will pay £157.88 a month.
Cllr Davinder Virdi (Con), Portfolio Holder for Finance, Transformation and Governance said: “As we’re all aware, for the past few years we’ve had a challenging economic environment ranging from austerity to Covid to the cost of living and inflationary issues.
“The budget demonstrates the council’s ability to ride a number of financial storms and come out the other side and continue to deliver excellent services.
“In the context of the strong headwinds, the budget deficit over five years is projected to be manageable, which we anticipate to be in the region of £1.6m.
“The lower amount is clearly better for Rushcliffe residents, particularly in the view of the continuing pressures of the cost of living.
“As authorities across the UK have been headlining Section 114 notices, we remain proud of the fact that Rushcliffe has no external debt.
“We are the only council in Nottinghamshire who can state that.
“This does not mean we will be complacent.
“That said, our capital resources are diminishing. We are therefore ensuring we have resources for future generations.
“The council will continue to face many challenges in balancing its budget in the future.
“Such challenges include ongoing delays in financial reforms, continuing rise in costs and the real term cuts in government funding.”
He added: “We’re in a better place than most.”
Cllr Virdi said the authority decided not to increase council tax by the maximum amount of 3 per cent.
A number of factors influence Rushcliffe’s low tax rates, including the fact most people in the borough are able to pay the fees, meaning collection rates are high.
In 2020/21, 99 per cent of residents paid their council tax bills.
For 2024/25, councils are allowed to raise council tax by up to three per cent or £5.
Conservative-led Rushcliffe Borough Council is debt free and therefore not impacted by an increase in interest rates on borrowing.
Rushcliffe has also received ‘nominal additional funding’ from the Government of £128,000.
£28,000 will be spent on flooding grants for affected homes and a scheme to help communities tackle floods in their area.
£100,000 will be set aside for the climate change reserve, the authority said.
Cllr Neil Clarke (Con), leader of the authority, said: “This is a prudent use of the taxpayer’s money and indeed our financial position is envied by many across the country.
“A lot of councils are in more financial challenge than we are. Not to be complacent but it is because of all the hard work that we are able to maintain this position.”
Cllr Jonathan Wheeler (Con) said: “None of us like to raise council tax but it is important to show residents what we are delivering for that.
“I welcome the £100,000 for the climate change reserve because that money is going to enhance our green spaces which can be enjoyed by everyone.”
