Tax rise and £22m cuts considered by Worcestershire County Council

Worcestershire County Council faces a shortfall of £67.9m in the next financial year

Savings of more than £22m are being planned by a county council along with a council tax rise next year of 4.94%.

The proposed increase in Worcestershire includes a 2% precept ringfenced to fund adult social care.

The council says it will still face a shortfall of £67.9m in the next financial year due to growing demand and rising inflation.

The £22.4m cuts include reduced pension costs and freezing some job recruitment.

A further £45m would have to be cut from the budget in the following three years, a report for the authority said.

Most of the shortfall is due to £17m to deal with inflation, £21m through rising demand for social care and £11m for the proposed pay increase for staff, the authority says.

The Local Democracy Reporting Service said the government had agreed to give the county an extra £26m in funding next year and an additional £19.5m for adult and children's social care.

Their proposed council tax increase will mean a Band D household would pay £69 more in 2023-24.

The report for the council's cabinet, which will discuss the budget on Thursday, said it proposed spending £3.5m from its reserves on public transport as it recovers after the Covid-19 pandemic.

Rugby Borough Council leader Seb Lowe said inflation was having a significant impact on their budget

Meanwhile, finance chiefs at Rugby Borough Council are proposing a 2.99% increase or about £5 a year for band D properties.

Inflation has also pushed up costs as the authority's budget papers said its impact has risen from a projection of £0.75m in early 2022 to £2.765m.

The impact will be tackled through existing budgets where possible, the council said.

"Our residents and businesses will be well aware of the impact of inflation on their own finances, and these increases will also have a significant effect on the council's budget," leader Seb Lowe said.