Spending review: Council tax could rise by 5%; £95m promised for public transport in Peterborough and Cambridgeshire

Chancellor Rishi Sunak revealed in the comprehensive spending review that local authorities will be able to increase their council tax bills by 2 per cent without needing to hold a referendum, while a further three per cent can be levied for social care.

This would be on top of any other council tax rises, for instance from police and fire authorities.

Funding outlined in the spending review included £95 million for Cambridgeshire and Peterborough to invest in public transport schemes, as well as “major upgrades” to the A47.

The Peterborough Telegraph has contacted the Treasury and the Cambridgeshire and Peterborough Combined Authority - the lead local authority for transport in the county - for further details.

Among the headlines in Wednesday’s announcement were a 4.5 per cent rise in core spending for local government, on top of £3 billion more for Covid-19 related costs.

The national schools budget will also increase by £2.2 billion, with many schools struggling with costs relating to the pandemic.

A council spokesperson said: “As with all financial settlements the devil will be in the detail. We will be working with the MHCLG (Ministry of Housing, Communities and Local Government) to ensure they understand the council’s financial position and that this feeds into any Provisional Local Government Settlement that is announced over the next month.”

Currently, the authority is preparing to make savings of £36 million to balance its 2021/22 budget - which it is legally required to do - after suffering from huge cuts to its government funding, as well as the impact of Covid-19.

So far, the council has outlined plans to tackle £2.7 million of the deficit, which includes a rise in the charge to collect brown bins for garden waste from £45 a year to £50 and the switching off of some lights between midnight and 5am.

The council is also planning to slash its reserves from £32.575 million to £14.053 million over the course of the current financial year.

Council cabinet member for finance Cllr David Seaton: “I think there are a lot of positives as the Chancellor’s statement including announcements and new investment on a range of issues including council finances, adult and children’s social care, schools, housing and rough sleeping, building safety, infrastructure, roads maintenance, digital connectivity and measures relating to the end of the EU transition period next year.

“Clearly it will help that the Chancellor has provided further funding to manage the cost pressures we face as a result of the pandemic, including the pledge to compensate for 75 per cent of irrecoverable council tax and business rates income and to extend the scheme to fund a portion of councils’ lost income from fees and charges.

“We are also keen to explore how the new Levelling Up Fund can help with crucial new investment to improve local communities, and the cut in the Public Works Loan Board lending rate is also positive.

“However, we still await the detail as to the exact benefits for Peterborough so our work with MHCLG will continue.

“Support to our communities and businesses is vital to help them recover from the devastating social and economic impact of this crisis. Local councils are one of the most efficient parts of the public sector so we need the freedom and funding to do that.

“We will continue to make the case that Peterborough needs fairer funding to support those efforts and level up the economy so that it benefits everyone.”