Residents in Tamworth are set to face significant increases in both council tax and housing rents under new budget proposals from the local authority. The planned rises, which are scheduled to take effect from April if approved, come as the council navigates financial pressures and imminent changes to local government structures.
Proposed Increases in Detail
The Tamworth Borough Council has outlined a budget that includes the maximum allowable council tax increase of 2.99 per cent. This adjustment would mean that households living in a band D property will see an additional £6.34 added to their annual bill. Alongside this, social housing tenants are facing a rent increase set at inflation plus one per cent, equating to a 4.8 per cent rise overall.
These funds are earmarked specifically for the maintenance and improvement of the borough's housing stock, ensuring that properties remain in good condition for residents. However, it is important to note that these figures are in addition to separate proposed increases from Staffordshire County Council and the Staffordshire Police and Crime Commissioner.
Broader Financial Context
Staffordshire County Council is proposing its own council tax rise of 3.99 per cent, while the Police and Fire Commissioner has planned an increase of 5.22 per cent. This layered approach to taxation means that many households in the area will be dealing with multiple financial adjustments simultaneously.
Carol Dean, the Leader of Tamworth Borough Council, has provided context for these decisions, highlighting recent changes in government funding for local authorities. She explained that the new funding model creates a stronger link to deprivation levels and consolidates various funding streams, which has initially resulted in a more favourable settlement for Tamworth.
Funding Changes and Future Projections
The revenue support grant for Tamworth has seen a dramatic increase this year, rising to £4,195,210 from just £363,000 in the previous period. This boost is due to the inclusion of several grants that were previously separate. Despite this temporary relief, the funding is projected to decrease steadily over the next three years, falling to £3,060,260 by the 2028/29 financial year.
Councillor Dean emphasised the council's efforts to protect services wherever possible, stating, "We're trying to protect as much as we can and we are grateful for the settlement we've had. That has made a difference because a couple of months ago it was looking very dire and we were looking at quite draconian measures then, but it is a lot better now."
Ongoing Challenges and Savings
Despite the improved funding situation, the council leader warned that financial stability is not guaranteed. "By no means would I say we're out of the woods because if we don't keep looking and making savings then we will be in a poor place," she added. This underscores the ongoing need for careful budget management and efficiency measures within the local authority.
The final budget decision is scheduled for approval on Tuesday, 24 February, giving councillors and residents time to consider the implications of these proposed changes. The council continues to work on identifying further savings to mitigate the impact of future funding reductions while maintaining essential services for the community.
