Cambridgeshire County Council Proposes Maximum Tax Hike Amidst £1 Billion Investment Strategy

A local authority indicated the necessity of making “difficult choices” when putting forward a proposal for the highest possible rise in the upcoming year’s tax levy. Cambridgeshire County Council put forward a 4.99% increase to its portion of council tax within its financial plan for the 2025 to 2026 period. The council stated it has faced growing demand for its services, alongside an escalation in their associated costs, attributing these pressures to special educational needs support and rises in National Insurance contributions. Lucy Nethsingha, the Liberal Democrat council leader, commented that the authority’s funding from the government was insufficient on its own to address the requirements of Cambridgeshire’s residents. She affirmed, “We are committed to ensuring the council delivers value for money in the services it provides.” Nethsingha described the upcoming year’s budget as “challenging,” further stating: “This reflects the position faced by councils up and down the country.” Elisa Meschini, who serves as both deputy council leader and head of the Labour group, remarked that “no one wants” to increase council tax. She added, “But we have had to consider some really tough choices.” Steve Count, the leader of the Conservative group within the council, leveled an accusation of “political spin” against the combined Labour and Lib Dem administration. He asserted: “They can’t hide the fact that they continue to introduce maximum council tax rises while delivering service reductions.” The council released its financial plans for the forthcoming year on Monday; these proposals are currently undergoing consultation prior to a complete council vote scheduled for the new year. The suggested 4.99% rise in the county council’s portion of council tax is projected to increase the yearly charge for a household residing in a band D property by £80.82. The authority indicated that anticipated increases to the National Insurance rate payable by employers would impose a substantial expense on the budget for the next year. Furthermore, it noted an increase in requests for assistance concerning children and young people who have special educational needs and disabilities. The council reported that requests for education, health, and care plans (EHCPs) have seen a 70% surge from 2020 to 2024. The council committed to allocating £1 billion towards vital services this year, encompassing highway maintenance and social care provisions. An expenditure of £21 million is planned for repairing roads, footpaths, cycleways, and drainage systems in the upcoming year, with an additional £20 million allocated for the year after. An additional £20 million has been designated over a three-year period to enable adult social care service providers to compensate their employees with the Real Living Wage. Approximately £8.7 million is designated for enhancing household waste recycling centres located in March and Milton, while £6.8 million is allocated for implementing low carbon heating systems in schools. The council reported a budget deficit of £34.2 million for the 2025 to 2026 fiscal year, a gap “which needs to be closed.” To aid in achieving financial equilibrium, the council intends to restructure its office facilities, divest properties – an action projected to save £1.5 million – and leverage technology to generate an additional saving of £500,000. For updates on Cambridgeshire news, follow on BBC Sounds, Facebook, Instagram, and X. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content found on external websites. Information regarding our policy on external linking is available.