Council tax rise agreed in South Staffordshire

The increase, which was passed at a full South Staffordshire Council meeting on Tuesday, means residents in Band D properties will pay £130.34 in 2022/23 for services provided by the district authority, including bin collections. It is the maximum district council tax rise allowed without a public referendum being triggered.

The council’s Medium Term Financial Strategy (MTFS) covering the years up to 2026/27 was also approved at Tuesday’s meeting.

Council leader Roger Lees told fellow members of the funding challenges ahead, as well as measures being taken to deal with pressures on finances such as rising inflation and the continued impact of the Covid 19 pandemic.

He said: “General reserves forecasts remain above minimum levels, which are set at £1.5m, until partway through the 2026/27 financial year. The MTFS provides a balanced budget for a four-year period to 2025/26.

“While developing the MTFS it was clear that several uncertainties remain: national economic uncertainties, inflationary pressures and legislative changes, in addition to South Staffordshire’s own ambitions around climate change.

“As such, and in a change to prior years, I propose to establish and maintain specific reserves to ease some of the pressures. The first is the creation of a pay and inflation pressure earmarked reserve.

“The second is to establish a new carbon reserve and finally, due to the Covid uncertainty, to continue the pay reserve for a further year. This will ensure any further financial impact of the Covid pandemic can be met without undue burden on the general fund.”

A report to the council said the Pay and Inflation Pressures’ Earmarked Reserve would be created from savings made during the past financial year.

It added: “The purpose of this reserve will be to mitigate the council from the potential impacts of future budgetary pressures – both pay and general inflation – arising should current levels of inflation prove durable.

“A new Carbon Reserve will be established in order to fund any costs arising from future requirements to meet the challenge of climate change. Setting aside non ring-fenced New Burdens Grant monies received in 2021/22 will support this.

“The Covid Uncertainty (Pay) Reserve will be retained for 2022/23. Elements of this reserve will have been applied in 2021/22 to help alleviate some of the impacts of Covid (lost leisure income) and to ensure a potential pay award for 2021/22 can be funded.

“It is likely however that residual funding will remain and this shall be used to ensure any further financial impacts of the Covid-19 pandemic can be met without undue burden upon the General Fund.”