Budget Consultation 2024/25

Introduction from Councillor Mike Evemy - Deputy Leader and Cabinet Member for Finance

As your local District Council, we are committed to caring for the Cotswolds in all we do. A key part of that is managing our budgets wisely so we can continue to deliver the services you rely on.

This year has seen large rises in costs for both residents and businesses as a result of continued high inflation and interest rates. We appreciate the impact this is having on you. It has also had a big impact on the Council's finances. We have seen large increases in costs for fuel to collect bins, energy to run buildings and other inflation-related pressures. 

The impact of increased costs to the Council means we have to work even harder to continue to deliver services efficiently. The Council has seen its core Government funding reduced in real terms by 50% in the last decade and the recent rise in inflation has pushed up the cost of delivering council services. 

On top of this, the much delayed review of local government funding suggests we could be facing a further £3 million reduction in funding by 2027 which would cut the Council’s budget by around 25% in one go. Without certainty on when the review will happen and how severe its impact will be, councillors must make decisions now to prepare for it.

Because of the above, the financial modelling done by the Council shows that unless significant changes are made to reduce spending and increase income, the Council will not be able to balance its budget in 2027. 

In its draft budget for 2024/25, the Council is proposing to raise council tax by £5 a year for a Band D Property and increase car parking charges. Together, they could raise £685,000 to fund vital services. It’s also proposing to increase the garden waste charge so that the service continues to be paid for by the people who use it and not subsidised by council taxpayers. The Council is also doing more to find further savings including measures to make Council operations more efficient. 

The Council is in a relatively sound financial position currently due to decisions in the last few years to raise charges and make services more efficient. I want to be upfront with residents that if we don’t make tough decisions over the next couple of years, we risk ending up like other councils - declaring effective bankruptcy and then seeing big tax rises, huge hikes in charges and services shutting down.

We are committed to meeting this funding challenge and our mission is to avoid getting into that position - as we have seen this year at Birmingham City Council. It isn’t just Birmingham though, it is a national challenge and many other councils have issued warnings in recent months.

By taking part in this consultation you can have your say on our proposals for how we are going to balance our budget. 

By making difficult decisions in next year’s budget, it will help us avoid making much tougher decisions in future and facing the harsh changes we have seen at councils that have lost control of their finances 

Find out more about the Council’s draft budget and our proposals

You can visit our website to find out more about the Council’s draft budget at www.cotswold.gov.uk/budget

If you are interested, we have published our full draft budget proposals including all the numbers here: https://meetings.cotswold.gov.uk/ieListDocuments.aspx?CId=1136&MId=2111 

What happens next

Once this consultation finishes, the Council’s Cabinet will review the responses from residents. We also expect the Government to tell us how much funding we will receive just before Christmas. Feedback from residents and funding from the Government will be taken into account for the final budget which will be considered by Cabinet and the whole Council in February 2024.