CUMBERLAND councillors have agreed a budget for the next financial year which protects front-line services and delivers on the priorities of residents.
The balanced budget was agreed at the Council meeting in Carlisle this week [6 March 2024] against a backdrop of challenging financial conditions for local government.
Central to the plans is spending on improving the health and wellbeing of residents. Initiatives which will be rolled out over the next 12 months include anti-smoking and Live Longer Better campaigns, and the setting up of the Health Determinants Research Collaborative in the area which will look to better understand and address local health issues so that the council can respond in a more meaningful way.
The budget proposals also include spending in areas which meet other key commitments. The first of these is to address inequalities across Cumberland through initiatives like the Food Cumberland Partnership and a programme to transform its children and family wellbeing services.
The area’s economy is due to get a boost with spending on regeneration projects and to help tackle climate change the council is planning on rolling out more electric vehicle charging points and pursuing active travel opportunities.
The budget also means that frontline services that are relied on by many residents are protected including adult's and children’s services, schools, libraries and roads. In addition, the council’s transformation programme is centred on improving all services over the next few years as it takes a more preventative approach.
The plan also includes better use of council assets and buildings to help it realise the opportunities of local government reorganisation. There are also plans to invest in, and make the most of, technology to improve services.
Council tax is the main contributor to the council’s net budget accounting for more than 50% of its income. To continue to maintain services, the council has therefore agreed a 4.99% increase in council tax. This includes a 2% increase to the Social Care Levy.
This means that for a Band D property the council tax bill will rise by £86.35 a year, or £1.66 a week, to help pay for council services.
To support those on low incomes, the council’s budget includes funding for the council tax reduction scheme which can help reduce the cost of a bill.
Councillors also agreed to increase the premium paid by second homes by 100% from 2025/26.
Speaking on the budget, Cllr Barbara Cannon, Executive member with responsibility for financial planning and assets, said: “I’m pleased that councillors have agreed our budget for the next financial year. The budget not only provides the funding needed to continue with our frontline services that so many people rely on, but it also means that we can deliver on the priorities of the people of Cumberland.
“As has been the situation for councils up and down the country, setting this budget has brought its challenges. Local government funding has been severely stretched in recent years at a time when demand for services has been rising fast. The responsibilities of local government have grown too with many of our residents not realising the full breadth of services we provide from social care to leisure centres, planning, highways and public health.
“This is why our transformation plan is so important, not only to make our services more effective, but also to put us on a more stable financial footing in the future. We have a plan and we need to stick to it to achieve the improvements to services we want to see for our residents, and realise the opportunities of local government reorganisation.
“Putting up council tax is never an easy decision especially at a time when people’s own budgets are stretched. With costs rising, increasing council tax helps protect services that are so important for many of our residents - a situation which residents understand given their responses to our consultation. For those on the lowest incomes, we have one of the most generous council tax reduction schemes in the country, and I’d encourage anyone who is struggling to pay their bill to contact our customer service team to discuss whether they are eligible for this support.
“The additional income from second homes will help us address the housing issues many of our communities face as well as help bring these homes back into full-time use.”
This is the first time that councillors have had the opportunity to fully shape the budget, having inherited the spending plans of the former local councils when Cumberland Council came into existence on 1 April 2023.
Since that time a lot of work has been going on to understand the budget position of the council and shape spending to focus on the council’s ambitions. This process included consulting with the public and stakeholders on some proposals.
Some 536 residents and groups responded to the consultation which ended on 12 January this year. Of those who provided an answer, just over 51% agreed that the core element of council tax should rise by 2.99%, and more than 52% agreed that the social care levy should increase by a further 2%. Over 70% of respondents said that council tax should increase on second homes by 100%.
The budget outlines over £276m in capital investments across the Cumberland areas. This includes investment funding for the Carlisle Southern Link Road, as well and funding for regeneration schemes in Millom, Cleator Moor, Carlisle, Maryport and Workington.
The council has already identified over £37m in savings which have been included in the budget. However, a predicted budget gap of just over £10m remains which will be funded through the use of capitalised resources and the council’s reserves.
The budget proposals were agreed by the Executive at their meeting on 13 February 2024.
- The full budget report can be found on the council’s website www.cumberland.gov.uk
- The net budget after service specific grants and fees and charges are removed is £319m.
- More than 50% of the council’s net budget is funded through Council Tax, with about 30% from business rates and less than 20% from government grants.
- To continue to provide the services residents need, the budget includes a rise in the council's portion of council tax from 1 April 2024. This is a 2.99% rise in council tax with a further 2% rise for the Adult Social Care levy. This will see a band D bill rise by £86.35 a year, or £1.66 a week.
- The 3,000 second homes in the Cumberland area puts an extra pressure on housing. The council has therefore agreed a 100% council tax premium on second homes to double their bill from 1 April 2025. This will provide a further £4m to help fund services and help the council tackle the affordable housing issues that affect many communities in Cumberland.
- The budget includes a reinstatement of the 50% discount for Class A Second Homes with planning restrictions. This would include the chalet properties in Allonby
- More details on the Council Tax Reduction Scheme can be found at: https://www.cumberland.gov.uk/benefits-and-financial-help/council-tax-reduction
- The council heard on 29 February 2024 that the government was minded to approve its request for Exceptional Financial Support to help fund its investment in services as part of its transformation plan and cover the additional costs associated with the bringing together of services following local government reorganisation. More information on this can be found at: https://www.cumberland.gov.uk/news/2024/government-agrees-support-cover-service-transformation-and-lgr-costs
- More information on the Health Determinants Research Collaborative initiative can be found at: https://www.cumberland.gov.uk/health-and-social-care/public-health/health-determinants-research-collaborative