Worthing Borough Council set to increase its share of council tax bills

A council tax increase of two per cent was given initial approval at a meeting of Worthing Borough Council’s executive on Monday (31 January).

If this is approved by full council later this month, the increase would come into effect from April.

This would mean an average annual increase of £4.95 for band D properties or £4.41 for band C properties.

District and borough councils may increase council tax by two per cent or £5 per annum without having to hold a referendum.

This means WBC has increased council tax to the maximum level allowed.

It is not alone in doing so with two thirds of councils planning to adopt the maximum increase, according to the Local Government Chronicle’s analysis of 50 local authorities.

A budget report says WBC has had to address ‘a budget shortfall of £1.136 million whilst contending with a pandemic’.

The report concludes that ‘efficiency savings’ have offset the deficit and the council is ‘now in the position to set a balanced budget’.

However, it outlined how a council tax increase will be key to bolstering finances in the coming years when support from central government decreases and the council is forced to fund its services from local sources, including business rates.

Executive member for resources at WBC, Elizabeth Sparkes said: “We know from previous years that the council must now be self-funding and we have forged ahead with our key strategic areas of commercialisation, digital transformation, and strategic assets investment in order to deliver the budget strategy.”

Ms Sparkes added that council tax increases have not kept pace with inflation over the last ten years.

Finance officers said there will be no need to use the council’s reserves for the coming financial year but they added that ‘the next few years are financially challenging’, with more than £2 million of savings required in 2023- 2024.

Given the ‘low levels of reserves’ held by the council, officers said: “It is now critical that these reserves be used only as a funding resource of last resort.”

Council leader Kevin Jenkins (Con, Gaisford) said that setting a budget has ‘never been harder’ due to decreasing support from central government, the pandemic, and falling revenue from council services.

“Our starting point has been to continue to deliver services that we’re already doing,” he said, “Where we can or should do more, we will.

“We are spending local residents’ money and we’re charged to do so wisely.

“Crucial at this time is our direct work with families in need of support; those who are not coping or are in crisis now; and those who are struggling.

“Our teams are working to give support and practical interventions where it’s most needed; we’ve got to support those who are most in crisis with discretionary hardship grants as well.”

Mr Jenkins wanted to remind residents that WBC only keeps a ‘small proportion’ of their council tax, with the rest going to West Sussex County Council and the Police and Crime Commissioner.

“Yet, with that small proportion of the council tax raised, we fund so many services across the town, from refuse to street cleaning, to parks and gardens, housing needs, and indeed so much more,” he said.