Cotswold District Council needs 'tough decisions' to avoid bankruptcy

Cotswold District Council says it has to make "tough decisions" to avoid bankruptcy

Tax and garden waste costs will increase for Cotswold residents as the district council faces a £3m hole in its budget in the coming years.

Cotswold District Council leaders says they need to make "tough decisions" to avoid bankruptcy as a result of reduced government funding and increased costs.

Unless significant changes are made, the council will not be able to balance its budget in 2027, it says.

The council will consult residents on its proposed budget in November.

In its draft budget for 2023/24, the council is proposing to raise Council Tax by £5 a year for a Band D Property, and increase car parking charges, which together could raise £685,000 says the Local Democracy Reporting Service.

It is also proposing to increase garden waste charges so that the service continues to be paid for by the people who use it and is not subsidised by council taxpayers.

The council says its core government funding has reduced in real terms by 50% in the last decade and the recent rise in inflation has pushed up the cost of delivering services.

There are also fears over a further £3m reduction in funding by 2027, and the council says it is searching for ways to make savings.

Councillor Mike Evemy says the district council is facing "an unprecedented financial challenge"

Deputy leader and finance cabinet member, Mike Evemy, said councillors of all political colours find the current way local government is funded "mad."

He added: "How do we as councils try to run an organisation on a year-by-year basis? There's recognition across the Local Government Association that we need sustainable funding settlements.

"The government has failed to fund councils properly and as a result, we're now facing an unprecedented financial challenge.

"I want to be upfront with residents that if we don't take tough decisions over the next couple of years, we risk ending up like other councils - declaring effective bankruptcy and then seeing big tax rises, huge hikes in charges and services shutdown."

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