Suffolk County Council’s budget has been ‘easier this time around’, the finance lead said.
Members of the county council’s scrutiny committee met yesterday for a five-hour discussion of the first budget proposals for the coming 2025/26 financial year.
Cllr Richard Smith, the authority’s lead for finance, said budget-setting had been ‘easier this time around’.
Cllr Richard Smith, the authority’s lead for finance, said budget-setting had been ‘easier this time around’. Picture: Suffolk County Council
He added: “We’ve not had to face the scale of difficult decisions to cut spending that have become the norm in recent years.
“Suffolk County Council remains an adroit, prudent and well-run council in financial terms.”
Nevertheless, the council still factored in a maximum tax rise of 4.99 per cent, consisting of a 2.99 per cent increase in Council Tax and two per cent in its social care precept.
Suffokl County Council is proposing a maximum tax rise of 4.99 per cent, consisting of a 2.99 per cent increase in Council Tax and two per cent in its social care precept. Picture: iStock
The increase would be the equivalent of a £1.51 weekly increase for a Band D property and £1.17 for Band B and, thanks to an increase in Suffolk’s tax base, would net the council an additional £35.9 million in funding.
Cllr Smith warned although this year’s budget had been kept more straightforward, the ‘worryingly high rate’ of overspending against the authority’s Dedicated Schools Grant (DSG) was limiting how reserves could be used.
The DSG is the money local authorities receive from the Government each year to fund schools and, as it stands, can be overspent through what is known as ‘statutory override’ until March 2026 without it affecting their own books.
Cllr Richard Smith said Suffolk County Council was overspending on its DSG at a worryingly high rate to meet demand. Picture: Suzanne Day.
In Suffolk, the DSG reserve is already being overspent, with the report forecasting a £54.1 million shortfall by April, £165.6 million by 2026 and £358.7 million by 2027.
Cllr Smith said: “Our problem, caused by demand, is shared by many other county and unitary authorities throughout England and ultimately the solution can only lie with action from central Government.
“Any effective solution will need large sums of public money, which is no more plentiful now than it was before.”
Cllr Andrew Reid, said Suffolk County Council’s budget would meet current demand and anticipate new commitments. Picture: Suffolk County Council.
As many as one in four councils may also need a Government bailout within the next couple of years, according to a Local Government Association (LGA) survey published last month.
Although the council said it expected the Government to extend the statutory override, it still had no detail on whether this would happen.
Nevertheless, the authority’s plans include a £18.1 million extra for children’s services and £35.2 million for adult care.
Cllr Andrew Reid, the council’s lead for education and SEND, said the budget sought to ensure the council supported current demand while anticipating new commitments.
He added: “Armed with invaluable data and evidence, we can plan for future needs — however, it goes without saying that we do not have an open chequebook.”
“We must examine and scrutinise every penny we spend to ensure we are doing the right thing for our children and young people in Suffolk.”
Cllr Bobby Bennett, lead for children and young people’s services, said: “Every budget we’ve set as this administration is based on putting the needs of vulnerable people first.”
The proposals will now be discussed by cabinet members later this month, on January 28, before going to full council on February 13.