The budget report for the next financial year will be considered at a meeting of the full Council tonight (Thursday 10 February). Despite the difficult economic situation, the Council’s Executive recommends further investment across the borough and a zero increase in council tax.
Lead Councillor for Finance and Resources, Cllr Andrew Hodges, commented: “Our overall financial position is healthy. However, like many other councils we face a challenging financial future. Our government grant has been reduced by 15.2% this year, which is a loss of grant income of £1.17m for 2011-12. We expect to lose a further £778,000 in the following year, with more grant losses to come during 2013-15. The loss over the next two years alone equates to 20.5% of our council tax income. This is part of a long term trend and follows previous income losses, especially with the fall in the base rate and reduced commercial income”.
Cllr Hodges continued: “Careful financial management, along with a continuing programme of savings and reviews, has allowed us to recommend a freeze on our portion of the council tax bill. We have also been able to recommend an investment of £424,000 in a number of schemes, such as pedestrian improvements in Guildford High Street. Also the provision of £500,000 per year to support our affordable housing programme in 2011-12 and subsequent years. This is in addition to approval of further funding of £44,000 for the Ash Green Flood Relief Scheme.
“We have already reduced costs by changing the way we provide services and plan to make a total of £2.2m further savings next year. This is also the second year of a pay freeze for Council staff, except for the lowest paid who will get an extra £250 per annum. We will continue to identify further efficiencies, including working in partnership, looking at new ways of generating income and using our assets more effectively”.