The County Council has approved one of the most forward-thinking financial plans of any UK council. Despite a poor Government grant increase, the Council has agreed a rise in council tax for the forthcoming financial year of 4.7%, followed by a steady reduction in the rise for the following three years of 4.3%, 3.9% and 3.5%.
The Council has stated that its four-year plan will go ahead as long as there are no more significant future changes in grant from Government.
Deputy Council Leader Tony Reid said: "Our priorities are very clear. We want to reduce council tax rises and make sure we provide the vital local services for the most vulnerable and the elderly, as well as our children and young people. It is an extremely difficult task and in order to balance the books, we will have to take some very tough decisions on how we provide some services. We intend to limit real cuts as far as possible through further productivity and efficiency initiatives and we are now in a position to set a clear path over the next four years, provided Government does not make our grant situation any worse.
"We are also clear why our financial position is under such strain. The Government has not recognised our case in terms of our large elderly population and the spiralling costs of adult social care. Outside of schools we’ve had a zero budget increase over the last three years and a 0.6% increase in cash terms for next year.
"Although the Government argues that it has increased funding to local government overall, you don’t have to be a mathematician to work out that they have dealt East Sussex a very poor hand.
"We only have an additional £1.6m to cover all our extra costs outside of schools such as adult social care, transport and environment and waste disposal which amounts to about £18m. We have had to find the balance between key service priorities and what our council tax payers can afford”.
Despite an extremely tight budget, the Council has agreed:
- an extra £8.3m for Adult Social Care
- an extra £1.8m for Children’s Services outside schools
- increased cash for highways maintenance
- £100,000 to fund another year of the successful campaign with Age Concern to help ensure elderly people claim the benefits they are entitled
- continued investment in major schemes such as developing the Hastings and Bexhill link road and new school buildings such as Tideway School in Newhaven
- £200,000 to focus on preventative initiatives for young people.
Notes to editors
The County Council has approved a budget for 2006/07 of £283m. The council tax increase for 2006/07 will mean that a band D taxpayer in East Sussex will pay £1,004 for the County Council’s part of the bill for local services.
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