Despite challenging financial times Westmorland and Furness Council claims it has worked hard to achieve a balanced budget for 2024/25 that protects front line services.
The council said that “after careful consideration of its financial situation, and the feedback received via its public consultation” that received over 600 responses, The Westmorland and Furness Cabinet have agreed to recommend the budget and council tax recommendations to Full Council on 22 February 2024 for their final decision.
The recommendation if approved by the full council next Thursday in Kendal will see an overall increase of 4.99% for the council’s share of the 2024/25 council tax payments made up of a 2.99% increase in the general Council Tax an additional 2% increase for the Adult Social Care precept for 2024/25
The cabinet is also recommending Full Council approve charging the empty homes Council Tax premium of 100% after 1 year empty rather than 2, and have a 300% premium (400% overall charge) for properties empty after 10 years – both are applicable from the 1 April 2024 approve the introduction of a 100% Council Tax premium on second homes effective from 1 April 2025
The cabinet is also recommending an updated Capital programme 2023-2029 and Treasury Management Strategy to approve a new five year Medium Term Financial Plan (MTFP) 2024 – 2029
If approved by Full Council this will mean the council has achieved a balanced budget for 2024/25, which meets the legal requirement and avoids the issuing of a section 114 notice that a number of Council have faced over the last few months.
The council is having to call on using £11million of its reserves in order to balance the books with its budget setting that is higher than it expected to have to use and is facing a £12.5million funding gap in 2025 that it will need to make further savings. It will also make £10million of cuts to help balance its budget for the coming year.
Among the increased financial pressures for the council are its planned solar farm development outside Barrow that will see costs land on the council earlier than anticipated and increased costs due to wider increases in prices.
Cllr Andrew Jarvis, Cabinet member for Finance says: “As a new council we have spent a lot of effort in our first year (2023/24) focusing on stabilisation and the need to get our basics right. We have been building the strong and sustainable foundations that we need now and for the future.”
"We have started to deliver on the ambitions set out in our council plan to create Westmorland and Furness as a great place to live, work and thrive and sound finances are at the very core of us achieving this.”
"The cost of living continues to be a concern and inflation, although settling, is still uncertain and is driving up the cost of delivering services to those who need them most. Demand for our services continues to rise and there is ongoing uncertainty about what future funding we can expect from central government.”
"For 2024/25 we have worked hard to achieve a balanced budget, that will allow us to invest in and maintain our services. Although, to achieve this we also had to draw on our reserves.
"We know that we cannot keep relying on the one-off use of reserves. As we look ahead we will need to change the way we work if we are to continue delivering efficient and effective services to our communities while securing our long-term financial sustainability.”
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