Westmorland and Furness Council is now approaching its third year after taking responsibility for all services for residents and businesses from waste collection and recycling to social care, education, roads and planning on April 1st 2023.
The council cabinet made up ten Libdem councillors including two Penrith ward councillors agreed to recommend an increase in council tax to Full Council on the 27th February for their final decision to ensure that the council can continue to be financially sustainable, and deliver services while avoiding cuts to frontline services at a meeting held at Kendal Town Hall this morning (Tuesday 11th February).
The overall increase of 4.99% for the council’s share of the 2025/26 council tax payments made up of a 2.99% increase in the general Council Tax and a 2% increase for the Adult Social Care precept for 2025/26.
Just under the Government 5% cap that would require the council to hold a referendum on increasing the council tax.
The Council is also proposing to apply a 1.7% on discretionary fees and charges across the district covering items such as car parking etc.
The Westmorland and Furness Cabinet are also recommending to Full Council that £5m of the additional council tax income generated from the second homes premium is protected and invested to support our priorities and those communities most affected by tourism. This includes new funding for affordable homes, additional support for playgrounds, transport schemes and the commitment to create more 20mph areas. The remaining additional income will support core service delivery.
Cabinet is also asking Full Council to approve a new five year Medium Term Financial Plan (MTFP) setting out the framework for how the Council plans to use its financial resources to fund the activity to deliver on the Council’s vision and priorities.
If approved by Full Council this means that for 2025/26 the council will achieve a balanced budget which is a legal requirement.
Cllr Andrew Jarvis, Cabinet member for Finance, says:
“As everyone knows it is still a very tough financial climate out there and many people and families remain affected by the cost of living crisis. Since Westmorland and Furness Council was created, we have worked hard to ensure we deliver a balanced budget as well as creating the opportunity for investment. We know that to be ready for the future we must change and transform, and we know we can’t do this alone. We must continue to work together with our partners and communities so that together we can all make a real difference, safeguarding essential services and driving forward positive change at a much quicker pace.
"Overall, considering the national picture and the proposed national changes to funding for local government for 2025/26, our budget is in reasonable shape.
"We know that our income levels and budget choices directly affect our residents as Council Tax is our main source of income. I appreciate that our recommendation will not be welcome by everyone. However, I must stress that it is a legal requirement to deliver a balanced budget, and this increase means we will can avoid cuts to services. We also have a Council Tax Reduction Scheme which is one of the most generous in the Country meaning that we can support the most vulnerable and those most in need.
"As well as ensuring we are financially sustainable we are also committing to invest £5 million from the second homes premium for the benefit of our area. Additionally, the budget includes £150 million through an ambitious capital programme for 2025/26. Together we believe this budget will make a real difference to people’s lives and to our communities.”
The recommendations of the cabinet for the 4.99% increase in Council Tax will be made to full council at a meeting in Kendal on Thursday the 27th of February on the same day voters South of Penrith in Eamont and Shap ward head to the polls to elect a new ward councillor.
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