Cambridgeshire County Council 5% tax rise is likely, says leader

Cambridgeshire County Council's estimated budget gap for 2024-2025 has increased from £16m to £23m

Council tax is likely to go up by 5% after a bigger than expected budget shortfall, a council leader has said.

Cambridgeshire County Council (CCC) said its estimated £16m budget gap for 2024-2025 has increased to £23m and was due to "inflationary pressures".

Liberal Democrat Lucy Nethsingha said there was also a rise in demand for services, which it could not predict.

Conservative opposition leader Steve Count said the council should be more efficient.

The Local Government Association has revealed English councils face a £4bn funding gap for two years from 2024.

Lucy Nethsingha said the council was aware of the "extreme cost of living pressure on families"

Ms Nethsingha said raising council tax by 5% was "not an easy decision as we know how difficult spending is for families".

The shortfall was due to a variety of factors, not all of which could be predicted, "including a rise in the number of older people coming into care" - the council said.

In addition, there had been "the extreme rise in the costs of placements of young people coming into care" especially those with "serious mental health problems".

Her administration had hoped to invest money to "slow the decline in our roads", which she blamed on "10 years of Conservative cuts to local government [funding]" but admitted this would be "extremely difficult to maintain".

Mr Count said the council had "actually got 11% more in their budget this year to deal with inflation" and should "make more efficiencies".

The administration had also lost "effectiveness of running the council" meaning it was "behind on all their capital projects"including an energy project due to "generate revenue of £3.9m", he said.

The Tories said they opposed cuts to mental health funding last year, while the administration had spent money on "political priorities" such as implementing the real living wage.

Analysis

By Emma Howgego, BBC Radio Cambridgeshire political reporter

Cambridgeshire County Council does not receive any extra money when inflation goes up, so just like us when we see prices go up in the shops, so does the council.

Between 2025 and 2029, the budget gap is predicted to be about £20m to £25m each year.

CCC has to either save money, raise more money, or use its reserves, and it has indicated it is trying to do a bit of all three.

The council is awaiting a new solar farm to be connected to the national grid which would bring in some extra cash.

A report to the council from its chief executive and executive director of finances and resources highlighted reviews into high-cost areas.

It said: "In 2023-24, pressures on our budget have arisen principally due to several very high-cost children's social care placements and a delay in receiving income from a newly constructed solar farm.

"We are seeing that demand for bed-based care for older people is also rising, following a period of reduction in demand and then stability stretching back for some time, to the beginning of the pandemic," the report added.

Proposals to set the council's budget are expected to be discussed by councillors in December.