Chelmsford and Brentwood council leaders warn tax rises are not enough

Chelmsford and Brentwood Council leaders said being allowed to raise council tax by 3% instead of 2% was not enough to bridge the expenditure gap

Extra income that could be raised through council tax would barely pay for bin lorry fuel, two Essex council leaders have warned.

In his Autumn Statement, chancellor Jeremy Hunt said councils in England could increase council tax by 3% without a local referendum, up from 2%.

An extra 1% for Chelmsford City Council would bring in about £170,000 and for Brentwood Council, about £125,000.

Diesel for bin lorries will cost between an extra £300,000 and £400,000.

Councils providing social care are able to increase council tax by 5%, up from 3%.

The two Essex council leaders have warned extra income that could be raised through council tax would barely pay for bin lorry fuel

Chelmsford City Council leader, Liberal Democrat councillor Stephen Robinson, said if it decided to increase its share of council tax next April by 3%, it would bring in an additional £500,000, the Local Democracy Reporting Service said.

But it had cost an extra £480,000 this year to just heat the swimming pools at Riverside and South Woodham Ferrers - double the amount from last year - and an extra £300,000 to put diesel in bin lorries.

He said it was more important to get clarity over what grant support the council would be receiving because for the financial year 2022/23 council tax only generated £14.6m compared to an overall budget of £56m.

Its projected deficit for 2023/24 has risen to £7.9m, from an estimate of £4.2m in the summer.

• Councils allowed to put tax up 5% next year

The authority said it might have to look at its workforce, which accounts for two thirds of its expenditure, and fees and charges - which could including parking - might have to rise as it seeks to balance its budget.

"An announcement just on council tax is not very helpful. It does not give us the whole picture," he said.

Meanwhile, fuel costs for bin lorries in Brentwood alone have gone up by £400,000.

Leader of Brentwood Borough Council, Conservative Chris Hossack, said the government "seriously needs to look at the way local authorities are financed".

"The issue is we can probably all get through it this year but next year is to going to bring an even tougher conversation," he said.

"The extra council tax does not bridge the deficit in any way... It hasn't really touched the sides.

"A decision will be made shortly about whether the council will be taking up the offer."

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