Bath & North East Somerset Council’s Cabinet is proposing a general Council Tax increase of 2.95% to enable the authority to deliver a balanced budget as well as help meet the rising demands on adults and children’s services.

This equates to an increase of £39.76 per year for a Band D property.

The increase is in addition to the 1% social care precept, which is ring-fenced to support Adult Social Care services. This is equivalent to an increase of £13.47 per year on a Band D property.

The proposal comes as the council faces reductions in government funding, with the Revenue Support Grant being reduced to zero (from £21 million in 2015-16). Underlying demand for Children’s Services and Adult Services will cost a further £6.6 million in 2019/20 (before savings and one-off grants are taken into account). The council has already saved £55.4m over the past five years, and a further £17 million is expected in 2018/19 – giving a total of £72.4 million savings over the past six years.

Councillor Charles Gerrish, Cabinet Member for Finance and Efficiency, said: “The Council Tax we are proposing is among the lowest in the region, and it allows us to deliver a balanced budget, which means that the Council’s reserves are not being used to meet the increasing demands of on-going expenditure.

“However, the scale of the financial challenge means some fundamental changes will be required to the way in which services are delivered and the way we work with our residents. It means we will continue to make efficiency savings, as well as increase our commercial income, in order to establish a core of quality services that can be sustained into the future. This is a responsible approach for the long-term, and is in the best interest of the council and its residents.”

Council Leader, Tim Warren, added: “Like all local authorities, we are facing some very tough decisions; however, B&NES remains an attractive and vibrant area with a strong economy that attracts investment, and we are working with partners like WECA to ensure we secure more homes, employment and the right infrastructure, so that we can improve life chances for local people.

“We are also lobbying central government for powers to introduce a levy on local tourism and short-term holiday lettings, and we are seeking compensation for the loss of council funding for student households. These issues are now gathering pace nationally, with the Local Government Association supporting these proposals.

“And we have set up our own housing company, Aequus Construction Ltd (ACL), to invest in new housing for Bath and North East Somerset, to both deliver new homes and generate income.”

A budget report before Cabinet on 6th February also outlines proposals for capital investment which would see investment in rural affordable homes schemes, extra care housing and a shared housing initiative for young people; £1.15 million for a Disabled Facilities Grant to help people live independently in their homes; £3.66 million on highway maintenance, £1.61 million of highway improvements, £1.2 million on renovated sites for additional education provision for secondary age pupils, and almost £800,000 over two years to replace the passenger transport fleet for home to school and social services.

The proposed budget will be considered by the Council’s Cabinet on 6th February. The Council’s final budget will then be considered by Councillors at a full Council meeting on Tuesday, 19th February.