Cheltenham residents could face council tax rise

Cheltenham Borough Council's proposed council tax increase will mean around an extra £5 a year for residents

Cheltenham residents could face a council tax rise next year as authorities feel the impact of the cost of living crisis.

Finance chiefs at Cheltenham Borough Council are proposing a 2.99% increase a year for band D properties.

They say the authority is in a "relatively good position" thanks to its financial strategies.

However, the latest budget monitoring report has forecast an overspend of £2.39m.

Of this, £1.985m results from interest rate rises, inflation, the cost of energy and the subsequent pay award for staff, according to the Local Democracy Reporting Service.

Council leaders say they are working to mitigate the pressure and generate income from elsewhere, but there are areas like pay increases for staff where this is not possible.

Peter Jeffries, finance, assets and regeneration cabinet member, said that when he presented last year's budget, inflation was at a 40 year high of 4.2%, while last month it hit 11.1%.

"Interest rates have increased eight times since this same budget paper was presented last year," he said.

"To top it off we've had three prime ministers and I've had to deal with a new chancellor per financial quarter."

The council's cabinet approved the interim budget proposals for consultation.

Their proposed council tax increase will mean around an extra £5 a year for residents and is subject to the conclusion of a consultation on the Local Government Provisional Finance Settlement.

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