Peterborough residents to be consulted on 27/28 budget- including 4.99% council tax rise- as Leader insists 'that money does not go to waste'

Residents, businesses and service users have been invited to give their views on how the council should spend its money following approval given to consultation documents by the council’s Cabinet on Tuesday (October 27).

The survey asks which services matter most to people, where the council could make savings or work more efficiently, and how it could increase income. It also asks for views on borrowing money for specific capital projects.

The council spends approximately £580 million a year on running and delivering services.

Councillor Mohammed Jamil, Cabinet Member for Finance and Corporate Governance, told the meeting that the council was dealing with a £8.9m overspend this year, with a projected budget gap of £7.4m in 2027/28 and rising to £15.4m in 2029/30.

Among the proposals is for a 4.99% rise in council tax from April 1, 2027

If passed, this would mean that the Band R rate of council tax in Peterborough is set to rise from £1,836.72 to £1,928.37. Budget consultation documents, created by the council, state that despite this increase Peterborough's Band D rate remains one of the lowest in the country and the lowest in Cambridgeshire.

Council Leader Shabina Qayyum spoke at the meeting and insisted that the council put the money from last year’s rise to good use, which included extending city centre street cleaning schemes, supporting vulnerable residents and introducing free bulky waste collections.

Cllr Qayyum said: “The decision that goes out for public conulstaion today doesn’t just represent the views of our residents who want to give us feedback on things that are important to them. It’s also a huge statement of how we work as a council.

“Last year, we were lucky enough to be given Fairer Funding from the government, which allowed us to be a bit more flexible. We were able to introduce free bulky waste collections, we did have to rise the maximum rate of council tax but, out of that, we’ve been able to safeguard our statutory services as well as instating family hubs which are helping people in poverty who do need that extra support, we’ve also improved our educational outcomes. That money doesn’t to waste.

"We’ve also been able purchase equipment to expand Operation Horizon and support the work of the City Centre Impact Team.”

Cllr Jamil added: “The council has improved financial management and governance, reduced debt and delivered annual savings of between £15-20m in recent years, however, reserves remain low and debt costs high.

“Much of the additional funding from the Fair Funding Review is being absorbed by rising demand and costs particularly in children’s services and adult social care. These pressures have contributed to a forecasted overspend of £8.9m this year. More residents require support, needs are becoming more complex and children’s residential placements are becoming more expensive. Home to school transport and housing pressures also “continue to affect out financial position.

“The immediate priority is to establish a sustainable budget and reshape services so that reserves can be built over time.”

The council has reduced its debt in the past 12 months and continues to limit new borrowing unless deemed essential or for projects which will save the council money in the long-term.

Residents can have their say via an online survey. Hard copies of the survey can be requested via email to [email protected] or calling 01733 747474.

The consultation runs until Tuesday 8 December.

For more information visit www.peterborough.gov.uk/budget-consultation.