Telford council leader warns cost pressures and lack of government funding will see council tax rise

This financial year the council budgeted more than £100 million – 68 per cent of its total net budget – to meet rising care costs.

Council leader Shaun Davies said that budgeted amount is not enough and the authority has invested at least another £5.5m into its care services.

“In these services, we’re not only seeing the impact of inflation but a sharp increase in the need and demand from our communities for vital and more costly services,” said Councillor Davies during Thursday’s night’s full council meeting.

“Every council in the country regardless of political persuasion is seeing double digit increases in the cost of providing services compared to just one year ago.

“We really feel this in Telford and Wrekin because we have one of the fastest growing and ageing populations in the country.

“Council services are the foundation of our communities across the country and many people simply can’t live or thrive without them.

“More and more of our residents need our services, but without adequate government funding the reality is that many more people will pay more council tax.”

Telford & Wrekin Council froze the amount it charges residents in council tax in March for the second consecutive year.

But Councillor Davies has warned that council tax will need to rise next year due to the increasing financial pressure.

“The simple reality is, local residents will pay more in local taxation and get less in local services,” he added.

“We like others across local government are in the eye of an inflationary storm and we’re now faced with more difficult decisions about funding future services.

“As a result our budget is stretched across all services, but we are facing a monumental challenge in funding adult and children’s social care.

“A record of strong financial control in Telford and Wrekin means that we’ve done all that we can to keep our council tax the lowest in the Midlands and second lowest in the country to account for the services that we provide.

“My message is clear to our residents - because the Government aren’t returning your money, your council tax will go up next year and you will get less from this council.”

The Government’s Autumn Statement announced last week saw a cut in National Insurance, an increase in benefits like Universal Credit and more support for business.

However, it offered no help to boost the Revenue Support Grant which councils receive for providing services.

Councillor Davies said that the grant amount has reduced from £52m in 2013 – 40 per cent of the council’s net revenue budget – to £11.6m.

“The Government’s Autumn Statement will have a direct impact for people in our borough,” he added.

“Whilst the headlines around the National Insurance reduction seemed on the face of it to help, independent organisations have said that the tax burden will go up – giving us the highest tax burden for 70 years.

“If you scratch further below the surface, the wider impact of the Chancellor’s decisions on support for local people is not positive.

“The lack of investment in local government and local services as part of the statement has been bitterly disappointing for all councils and will impact on all communities.

“We see no further investment for the services that matter in our communities, protecting our most vulnerable adults and children, supporting economic growth or keeping our places clean and green.

“This is a huge missed opportunity. One hundred pounds today buys far less than 10 years ago. In fact, the Bank of England suggests that goods or services costing £100 in 2013 would cost £134 today.”