Small council tax rise planned by Essex County Council

There are no plans to raise the overall bill

Author: Dan GoodingPublished 23rd Feb 2021

Unlike many other councils, Essex County Council aren't looking at increasing their overall council tax bill this year.

Their budget proposes a 1.5 per cent rise just for adult social care, but that's it.

There are no plans to raise the bill for other services from this year.

Budget documents say this provides a partial contribution to the financial pressures in adult social care where the net expenditure is budgeted to increase from £423m to £442m, an increase of £19m.

The primary drivers of the increase in cost are the National Living Wage (which has risen from £8.72 to £8.91 per hour), increases in care package costs, and demographic growth.

Extra cash for the council

The council's also set to get £28.8 million in emergency grant funding from the government.

COVID-19 emergency grant funding is for 'continuing one-off expenditure pressures' resulting from the pandemic in 2021/22.

These expenditure pressures are not built into the base budget, given the expected one-off nature during the pandemic.

As these become clear appropriate decisions will be brought back to Cabinet.

Some savings needed

Essex County Council has a funding gap which needs to be addressed.

Savings need to be found to close the £46m gap in finances, some in the next two years.

The budget report says:

"It is imperative that the Council maintains focus on financial sustainability and continues to identify further income and opportunities for new savings.

"The Council must continue to explore the redesign of services and different ways of working with its partners, local communities and the voluntary sector to ensure essential services can be provided within the context of increasing demand."

Some of the plans to fix this include investments in projects to generate income for the authority.

The full council will vote on proposals this morning (Tues).

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