Plans for the 2025/26 draft budget, which were released by Southend Council yesterday, propose a council tax rise by the maximum allowed – 4.99 per cent.
However, the council says it still leaves the authority with the second lowest council tax in Essex, and will provide more money to fix potholes in the borough’s roads and help fund the “investment needed into frontline and statutory services”.
This includes the rising cost of adult and children’s services and an increase in employers’ National Insurance contributions.
Councils will have to wait until February to hear how much Government help they will get with National Insurance.
In Southend, the increase amounts to an extra £1.2million for its 1,860 staff and the council estimates it may get roughly half back from the Government.
Despite this, the council has pledged a slew of capital investments, including £4 million extra to fix and resurface more roads and pavements, in 2025/26.
Daniel Cowan, leader of the council, said: “This is a positive budget despite continued challenges in the local government sector.
“It’s one that seeks to invest over £25 million into fixing our budget, addressing and accounting for historical pressures to support our services in the immediate term but also into the future.
“There is significant investment into children’s and adult services of £5.75million into adult social care and £4.75million into children’s services.
“There is also investment on the revenue side into important projects, £185,000 into our civic pride agenda, an additional £100,000 to support events and tourism in the city and increasing the revenue side of the highways budget by £250,000.
“There’s no need for additional borrowing. There is no use of reserves.”
The council says it will achieve its budget aims with new savings and proposed increased income totalling £3.6million, making £5.3million when added to previously agreed savings for 2025/26.
In addition, the council has received an extra £7.3million funding from the Government and will use £1.4million from the Accumulated Collection Fund – excess funds left over from business rate collections.
Mr Cowan added: “We have been working hard to reduce our forecasted overspend this year.
“This is down to £4.7million by the end of November 2024 and we will continue to work hard to bring this down and reduce the need for use of reserves to balance the budget at the end of this financial year.”
The draft budget will be considered by the council’s cabinet on Monday and the council’s policy and resources scrutiny committee on Thursday, January 30. Any changes to the draft budget will then be considered by cabinet on Tuesday, February 11, with the final budget to be discussed and approved at full council on Thursday, February 20.