Histon & Impington Parish Council will be bucking the trend and capping its Council Tax increase at just 2.86% for 2023/4.
Despite costs that are estimated to rise by around 14 per cent, this increase has been set at marginally less than last year’s 3%. It will amount to an extra £3.33 for a Band D household and will mean the Parish Council can raise an estimated £411,744 to spend next year. This move is likely to mean dipping into reserves to the tune of around £46,000.
Parish Council Chair Denis Payne explained: “The Council is well aware of the money pressures on everyone and is able to take money from general reserves to help this year. We plan to do the same over the next few years as well, taking our reserves down to a lower, but still safe, level.
“There may be a bigger increase at the end of this in three or four years, but hopefully by then everyone will be in a better financial position and inflation will be under control.”
New charge to pay for buses
The move puts the Parish Council out of step with the other public bodies that benefit from residents’ Council Tax payments.
The revenue from this tax has historically been shared by the County, District and Parish Councils, as well as police and fire services. But for the first time this year, Cambridgeshire and Peterborough Combined Authority (CPCA) are making a claim on residents.
Regional Mayor Nik Johnson has proposed a brand new charge that will embed £12 into the 2023/4 bills for Band D homes.
The new CPCA charge will be ringfenced for passenger transport services in the area, and in particular, to support bus services that were withdrawn by Stagecoach at short notice last year. Contracts were hastily negotiated with other bus companies, but this left a £3.5m gap in the budget.
Jon Alsop, CPCA’s Chief Finance Officer, explained: “The cost of the new services is considerably higher than those they replace, reflecting the substantial increase in fuel, energy and driver costs that are facing the public transport industry at large. This pressure is expected to continue into the new year…”
In balancing their budget, he rejected making cuts to existing Combined Authority commitments or using one-off reserves, saying: “both these responses are inherently short term – they would provide funding in 2023-24 but do nothing to enable the Combined Authority to continue those services in 2024-25 and beyond.”
Other increases
While final decisions are yet to be voted on at Cambridgeshire County Council, the indications are that the cash-strapped County Council is, like last year, likely to add a further 4.99% to its bill, amounting to around £73 extra for a Band D property.
Cambridgeshire’s Police and Crime Commissioner has consulted on increasing the policing element of Council Tax by 5.8% – up from 4% last year. This would mean an additional annual charge of £14.94 for a Band D property.
Cambridgeshire and Peterborough Fire Authority is proposing 6.6% rise – compared with just 2% last year – adding a further £4.95 a year for Band D properties.
More information about the South Cambs District Council Council Tax proposals will be available following their budget meeting on 6 February.