Councillors agree Cambridgeshire council tax rise of 2.99 per cent

The decision was taken on Tuesday (February 9) as the county council finalised its budget for the 2021/22 financial year.

The leader of the council, Conservative councillor Steve Count, said that following amendments to the budget made by his group, the council is planning to spend around £660.3 million in 2021/22.

That amounts to an increase of around £47.3 million – or 7.7 per cent – compared with last year’s budget.

In reality, the council ended up spending around £70 million more than budgeted over the past year owing to the impact of the pandemic, most of which was financed by central government.

Cllr Count said there are still “uncertainties” over the budget for the year ahead following a year “unlike no other in our history”.

He praised efforts across the council to “maintain services and support the most vulnerable” over the year, despite, and in part in response to, the impacts of the pandemic.

Such is the uncertainty for the year ahead, he said, it is possible that a summer reset of the budget may be required.

The council said that when the budget was set this time last year, it was estimating the need to address a budget gap of £4.2 million when setting this year’s 2021/22 budget. Instead, the council said, despite planning to make savings of around £4 million, the budget gap for this year due to be closed ahead of the meeting was around £9.6 million, owing to the impact of the pandemic.

The Conservatives introduced a council tax increase of 2.99 per cent as a “last resort”. The change is one per cent higher than the 1.99 per cent increase previously expected, which is estimated to raise an additional £3 million this year. In addition, the Conservatives will not put in an expected £4.1 million into the council’s transformation fund, and will withdraw £3.8 million.

The county council’s share of the council tax makes up just over 70 per cent of residents total bill, with district councils and the police and fire services also levying a charge. Tuesday’s change will increase the county council’s share of the council tax on an average property – Band D – from from about £1,359.18 a year to £1,399.77 year.

Government rules allowed the county council to raise the council tax by up to 4.99 per cent this year. The Conservative group said it would be “unthinkable” to implement the maximum increase.

Cllr Count said: “The ongoing and likely lasting damage done by the pandemic means we need protect our residents form the burden of extra taxation as much as is possible”.

The Conservative group on the county council increased the county council’s share of the council tax by 3.59 per cent last year, 2020/21.

The Conservative group says that it is a “low-cost authority with good outcomes,” and that it delivers its services for £155 less per resident than the England’s county council average

The county council estimates it will receive funding of over £320 million from council tax this year, £64 million from business rates, £122 million from fees and charges, and around £136 million in central government grants.

Following unsuccessful attempts by the opposition Labour and Liberal Democrat groups to amend the budget with their own spending priorities, both groups voted against the Conservative budget.

The budget passed with 34 votes in favour, 20 against, with one councillor abstaining.

The county council’s share of the council tax bill for 2021/22 will be:

Band A: £933.18

Band B: £1,088.71

Band C: £1,244.24

Band D: £1,399.77

Band E: £1,710.83

Band F: £2,021.89

Band G: £2,332.95

Band H: £2,799.54