Cabinet agrees proposed budget and Council Tax for 2021/22

Herefordshire Council’s Cabinet has agreed the proposed 2021/22 budget which will now be put forward for recommendation to Full Council on Friday 12th February 2021.

The proposed budget takes into account the 2021/22 provisional local government finance settlement announced by central government last December. This includes:

• ‘Lower Tier’ Services Grant of £0.25m which will cover around 70% of the cost of the council’s response to the pandemic
• Revenue Support Grant funding of £0.6m
• New Homes Bonus funding of £1.7m
• Rural Services Delivery Grant of £5.3m

Herefordshire Council said: “The council is facing pressure on its budget over the next financial year, mostly due to the impact of the Covid-19 pandemic. £11.2m in savings and a Council Tax increase have been proposed to Full Council to deliver a balanced budget. It has also been proposed that £1.9m of additional funding is provided to increase Council Tax discounts for those facing financial hardship.”

Council Tax funds around 29% of the council’s budget. A 4.99% total increase to Council Tax has been recommended. This is an equivalent rise of £1.51 a week for a Band D property. The increase is made from:

• 3% increase to the ‘adult social care precept’. This will provide an additional £3.2m to be spent on delivering social care services
• 1.99% increase to ‘core Council Tax’. This will provide £2.2m towards the cost of all other council services

Residents on a low income may be eligible for help to pay their bill through the Council Tax Reduction scheme. Some residents will continue to pay no Council Tax at all, such as young adults who have left care and, with effect from 2021, also all the council’s Foster Carer families. More information and advice on reduction schemes and allowances can be found on the Herefordshire Council website at www.herefordshire.gov.uk/counciltax