Essex County Council unveil £2bn budget for 2024/25
We're told they're focusing on 'essential service preservation' amid 'financial challenges'
Essex County Council has released its budget proposals for the 2024/25 fiscal year, amounting to £2 billion.
They say the primary objective of these plans is to safeguard essential services amidst financial pressures on local government. The council is proposing additional savings of £32 million in 2024/25 and an extra £20 million in 2025/26.
Facing budgetary pressures, the council cites factors such as elevated interest rates, inflation, increasing service demands, and a suboptimal financial settlement from central government. To address these challenges, the council proposes a 2.99% council tax increase for the 2024/25 fiscal year, along with a 2% adult social care precept. They say this move aims to provide medium-term stability and certainty for future years.
The proposed council tax increase is intended to address national challenges in children's services, adult social care, and Home to School Transport, with estimated pressures of £80 million for Essex in 2024/25.
Allocations from the increase include £16 million to support older people and adults with disabilities, an additional £14 million to protect vulnerable children, and £10 million to offset rising costs for Home to School Transport, particularly for children with special educational needs and disabilities.
The council say they remain committed to delivering various schemes as part of its capital spending program. Projects include the Beaulieu Park station in Chelmsford, the Chelmsford North-Eastern Bypass, and the Colchester/Tendring A120-A133 link road and rapid transit scheme, along with ongoing highways maintenance and new school buildings.
Despite the proposed tax increase, Essex would remain in the bottom third for tax rates among shire authorities.
Councillor Chris Whitbread, Chancellor of Essex, stated, "These budget proposals aim to balance the preservation and development of essential services while addressing priority areas identified with input from residents. We recognize the challenges faced by many, and the proposed council tax increase is an unavoidable step to ensure stability in the coming years and plan with greater certainty in the medium term."
Whitbread acknowledged potential concerns about the increase, emphasizing its necessity given the current economic climate and demand pressures. The budget proposals, informed by a public consultation at the end of the previous year, will be presented at the council's Cabinet meeting on 16 January and at its Full Council meeting on 13 February. The consultation process included input from residents, revealing concerns about the NHS and community safety, which influenced the council's financial strategies. Whitbread concluded by stating, "Without significant interventions and support from central government, more challenging decisions may lie ahead for councils in the future."