By Carmelo Garcia – Local Democracy Reporter
Gloucester taxpayers face an almost three per cent tax hike as well as rising parking fees this year as the City Council hopes to secure a £15.5m emergency loan from the Government.
The proportion of tax which goes towards services provided by Gloucester City Council is expected to rise to just over £244 for band D properties.
The full council tax bill will be much higher as it will include the fee for Gloucestershire County Council’s services and the police – with residents in Quedgeley also paying towards their town council.
Deputy leader Declan Wilson (LD, Hucclecote) told the cabinet meeting on February 11 that achieving a balanced budget is only achievable if their bid for exceptional financial support (EFS) is approved.
“Without that the council would not be able to set a balanced budget and would face the risk of a section 114 notice,” he said.
He said the proposed budget had very little headroom and with reserves at the lower end of what is acceptable.
Cllr Wilson also explained that the emergency funding would allow them to stabilise their financial position.
However, they would need to implement further savings above those planned for the upcoming year.
“The EFS is a temporary reset, not a solution,” he said.
“The plan is explicit that delivery of the recovery plan including further savings, income generation and asset disposal is essential if the council is to move towards a sustainable medium term position.
Borrowing costs, the costs of local government reorganisation and inflationary pressure are the main pressures the council faces, he added.
“This is not a one off exercise, similar levels of savings are assumed in future years,” he said.
He said the council’s capital programme totals around £23m over the next five years.
“This budget will stabilise the council in the short term. But it is fragile.
“It depends on EFS approval, disciplined delivery of the recovery plan and further difficult decisions in future years.”
The cabinet supported the money plan and council tax proposals which will be debated by full council later this month.