Framework set to help deliver balanced budget

23 Jan 2025

Councillors are due to discuss the framework to set West Suffolk Council’s budget to invest in the prosperity of local communities and businesses while meeting tough financial challenges.

West Suffolk Council’s Performance and Scrutiny Committee (PASC) is due to meet on 30 January to look at plans on how the framework for the Council’s £75.0 million budget will be prepared. This includes their crucial role in scrutinising the key assumptions in the budget such as areas of income and pressures.

This will then help inform the creation of the more detailed budget which Cabinet will later recommend to Council in February.

The PASC report shows the Council will be able to set a balanced budget for 2025 to 2026 through prudent financial management, as highlighted by last year’s LGA Corporate Peer Challenge. But the report also highlights that future years will be challenging depending on what happens nationally with Local Government funding.

The balanced budget means the Council will be able to deliver vital services such as housing, reducing homelessness, emptying bins and investing in creating jobs, improving health such as parks and leisure centres while protecting the environment.

Through the Council’s investment in property, which secures both an annual income of over £7 million and boosts jobs, as well as funding green energy which brings an annual income of nearly £3 million, the authority has been able to protect services.

The Council is also on track to deliver its commitment for £1 million in savings by March 2026, the vast majority of which has already been achieved in year. Beyond April 2026 the Council is looking at similar annual savings to stay on top of inflationary and demand pressures. The level of savings required beyond next year will be kept under constant review as new information is made available by the Government on future funding for local government.  

The report highlights that Government has given the Council the same core spending funding but this is only possible on an expectation of raising Council Tax.

West Suffolk Council has been able to reduce the burden on Council Tax payers and protect services by funding 80 per cent of the true cost of providing them through other income streams and Government funding. This has been achieved through initiatives such as creating an income from prudent investments and production of green energy. This means residents are only paying for 20 per cent of the true cost of services such as emptying their bins or provision of parks, leisure centres and housing. Around 11 per cent of the total Council Tax bill goes to West Suffolk which is around £200 for the average Band D property. The majority of properties are on other banding and have lower Council Tax bills. In addition, The Council has already agreed this year up to a 100 per cent discount on Council Tax for those on low incomes, including some that are working. Cabinet will make recommendations on Council Tax levels in February for Council to make a decision later in the same month.

As part of regular review of costs the council will look at increases to some fees and charges so tax payers are not left out of pocket, following the user pays principle. This includes looking at charges such as the 20p admin charge currently paid by the Council for motorists who use the parking Ringo App which costs West Suffolk taxpayers around £200,000 a year. A new national scheme is being proposed which will replace all individual local scheme and will also be based on the principle that the cost is borne by the user. The Council is therefore looking to implement that change from April 2025 in anticipation.

Cllr Diane Hind, Cabinet Member for Resources for West Suffolk Council, said: “This paper sets out the challenges and framework for PASC to scrutinise that will deliver a balanced budget and the Council’s strategic priorities. Importantly, it will deliver the services and initiatives that make a real difference to the lives, health and prosperity of our communities, businesses. We have a strong financial record, as highlighted by the Local Government Association independent Corporate Peer Challenge which gives us strong foundations to deliver and meet the challenges ahead. We will continue to make the West Suffolk pound go further and deliver efficiencies and value for money – such as funding 80 per cent of the true cost of services through investment and income. This means Council Tax payers only pay 20 per cent of the cost of these high quality services. Also with reduced funding it makes sense that tax payers should not foot the bill when current fees and charges set in cheaper times now do not cover the cost of delivering the service and that the users should pay. The detailed budget will be discussed by Cabinet and Council in February.”

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