Judy Terry is a marketing professional and a former local councillor in Suffolk.
It’s budget time – not merely for the Treasury, but also for local authorities.
The County Council is the first of Suffolk’s local authorities to reveal its plans, admitting that it has been hard hit by inflation and, despite lobbying the Chancellor, will not receive enough Government funding to keep pace with rising demand. To balance the books the burden will fall on local people.
The latest census recorded a population of 763,375 in Suffolk, up 30,000 in a decade. It is not especially affluent, with the average salary well below the national average at just £29,866 according to figures released last December, with women paid up to £5,000 less than men!
Suffolk County Council has a reputation for responsible financial management, and its proposed budget for 2024/25 will be around £725 million:
Key decisions have already contributed to significant savings, including £30.7 million over the last six years through the successful Adult Social Care Transformation programme, focusing on boosting independence and keeping people well for longer through cutting-edge care technology. A further £30.6 million will result from extending the programme; the average lifespan is 80 years.
Restructuring to improve delivery across all services will account for £11 million in staff savings whilst £15.9 million of reserves will be used to balance the 2024/25 budget.
£528,000 of Covid recovery money will be made available to Arts and Museums in 2024/25, but the sector will lose £0.5 million thereafter, prompting criticism within – and beyond – the sector.
Nevertheless, this means Council Tax increases of 4.99 per cent. With the majority of Suffolk households in Band B, this will add £23.50 to their weekly costs (compared with £1.12 increase for 2023/24) – and that’s before Suffolk’s other authorities and the Police & Crime Commissioner publish their own budgets with extra charges.
Given the potential for further significant increases, it is surely time to question why Suffolk has so many local authorities. Thankfully the number reduced from eight a few years ago, when East Suffolk and West Suffolk each absorbed two councils. However Mid Suffolk and Babergh refused to merge; Ipswich has its own council, whilst there are town councils in Southwold and Lowestoft. But do they all consult with each other when it comes to setting budgets, with clear strategies for procurement, services and investment, to avoid duplication and maximise value for taxpayers? Tourism is one sector which certainly isn’t joined up. I haven’t seen any evidence of a joint Finance Committee combining resources, although some office accommodation is shared.
Conservatives are supposed to be about low taxation and this is certainly the message from Downing Street, but the lowest paid, who struggle to meet their energy and food bills as rents and mortgages also rise, continue to be penalised. Politicians from all parties appear to be unaware of how ‘ordinary’ people manage their personal finances, especially when demanding lifestyle changes to meet environmental challenges.
Suffolk is a popular location for second home owners who not only deprive locals of being able to buy a property for full time occupation in some areas, because prices are too high, but may not pay council tax. Two of the most popular destinations: Southwold and Aldeburgh suffer from low occupancy, especially in the winter months, seriously impacting local shops and hospitality businesses.
This is very much a ‘grey area’ when rising numbers of second homes are now also holiday lets, often designated as small businesses they are even exempt from business rates. It is not fair; councils should be charging a premium. So, congratulations to East Suffolk which took the initiative, and has now been joined by Mid Suffolk and Babergh councils, with the potential to raise an additional £14 million from an estimated 6,200 second homes. But, this is just a start!
Meanwhile, following Scrutiny and Cabinet meetings, the County’s proposals will go to Full Council on 15th February with a vote on the budget for 2024/25, the first year of the two year plan.
Councillor Richard Rout, deputy leader and cabinet member for finance admits:
“This is the most challenging budget setting process the council has faced for many years but, with demand at an all-time high, we are putting adult and children’s care at the heart of our plans.
“We are a well run council, saving £66 million by working smarter and leaner over the last five years, but we need to go even further now and have spent months scrutinising spending across all our services.
“We understand the financial pressure facing Government, especially after the pandemic, but this means that local authorities like us have to find savings.”
He went on to thank the record number of people who completed the online budget consultation and took part in focus groups, recognising that “the majority would rather not see council tax increases, and I hope they understand why – for the first time in years – we must ask for the maximum to help support those in most need.”
Although not specifically mentioned, those in need will undoubtedly include victims of the recent serious floods which are likely to have an adverse financial impact on communities requiring extra support.
Inevitably, the budget’s plans have raised concerns about staffing, but the council explains that wherever possible savings will be achieved through ‘natural turnover’ and robust vacancy management to minimise redundancies and associated costs, and to mitigate the impact of workforce changes on frontline services. Another reason to ensure that all Suffolk’s councils share resources as much as possible.
There also needs to be recognition that Arts and Museums are not only critical to the local economy, including Tourism, but are valuable contributors to wellbeing and education. They will have another 12 months to address potential implications for reduced funding, reviewing their own budgets and programming to ensure best value. We can expect an energetic debate, which I shall be following.