Council tax in Herefordshire could go up by almost 5% next year due to the impact the coronavirus pandemic has had on local authority finances.
Herefordshire Council is predicting a worst case scenario budget gap of up to £16 million in the next financial year.
They say the Covid-19 pandemic has caused uncertainty which has made it difficult to anticipate how much funding the council will receive from central government, council tax and business rates in future years.
The council is preparing to make savings in some services so that a balanced budget can be delivered for 2021/2022.
Their draft proposals assume a total council tax increase of 4.99%.
This would be made from an increase of 1.99% to core Council Tax which would contribute £2.2 million towards council services. A social care precept of 3% would contribute a further £3.2 million to be used on social care services.
The council says it is also consulting on two ideas to support vulnerable residents.
Firstly, whether residents would be willing to pay more council tax if the increase helped residents on low incomes.
And whether residents would support the introduction of a voluntary Community Contribution Scheme to provide additional funding to support vulnerable residents.
Finance and corporate services cabinet member Liz Harvey said: “The Covid-19 pandemic has shown just how important council services are to our communities, but it has also had a significant impact on how we balance our budget.
“We have had to make sensible assumptions for next year’s proposed budget because decisions about the level of central government funding have been delayed.
“We are committed to balancing our budget while continuing to efficiently deliver the services that our communities need and rely on.
“This is why it is more important than ever to share your views on our proposed budget.
“We want you to tell us how to get value for every pound we spend, and how we can continue to support all residents and the vulnerable in our community as we plan for the future.”
People can have their say on the council’s proposals by visiting www.herefordshire.gov.uk/budgetconsultation
The deadline for this is January 8, 2021 and the received feedback will be considered by full council on February 12, 2021.
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