New Council Budget Delivers in Face of Inflationary Pressures

THE Council will again protect frontline services and deliver on major investments on modern new facilities for residents, despite inflationary pressures which total £8.7 million this year.

With many councils having to consider unpalatable cuts to public services, Reading’s latest proposed budget shows it remains well-placed to absorb the additional costs after years of sound financial planning.

A second new flagship pool and leisure centre for Reading - this time at Rivermead – Reading’s first new train station for 117 years at Green Park and the modern new Reading West Station, are all due to open in 2023 and form part of the Council’s new three-year budget. Other major projects include a continuation of Reading’s largest ever road repair programme, the town’s biggest council house building programme for a generation, new segregated cycle lanes, improvements for local bus services, new playgrounds and major investments in carbon cutting technologies.

The Council has additionally budgeted for £4.4 million extra this year to care for the vulnerable and elderly residents across Reading who rely on these essential services.

The proposed Council Tax increase for 2023-24 is 2.99%, with an additional 2% Adult Social Care precept.

70% of Council Taxpayers in Reading live in Band A to C properties, with only 15% of households in Band D, making the usual Band D comparison less relevant in the town. A comparison of ‘average Council Tax per dwelling’ for last year (2022-23) puts Reading as the third lowest in Berkshire (source https://www.gov.uk/government/statistical-data-sets/live-tables-on-council-tax )

With the continuing cost of living crisis impacting on low income households the most, the Council plans to maintain the subsidy for its enhanced local Council Tax Support scheme and is this year adding a £75 hardship payment for those eligible. This means eligible residents will have their Council Tax bills reduced by £75 this year.(www.reading.gov.uk/council-tax to check for eligibility).

The Council’s new budget for 2023-24 forms parts of its Medium Term Financial Strategy (MTFS) to 2026. It will initially go to a meeting of Policy Committee on February 20, before it is debated at a meeting of Full Council on Tuesday February 28. https://democracy.reading.gov.uk/ieListDocuments.aspx?CId=138&MId=4934

Councillor Jason Brock, Reading Borough Council Leader, said:

“Years of prudent financial planning means we remain in a strong position to deliver major improvements for residents and to protect the frontline in the face of major challenges, not least inflation – running at its highest rate for decades – and this Government’s continued failure to properly address and resource local councils for essential social care services.

 “You don’t need to look far from home to see councils having to consider painful cuts to local services, while a handful are on their knees and have agreed to 10%, or even 15%, Council Tax increases.

 “In contrast, 2023 promises to be a landmark year for Reading with major infrastructure projects coming to fruition. We are now looking forward, and our three-year plan shows a continued trend of investment in Reading and its residents.

 “Major infrastructure on the horizon includes a brand new flagship Central Library, the modernisation of the Hexagon Theatre, 400 new affordable Council homes built by 2026, custom-built adult social care facilities at Battle Street, another £8 million on new road surfaces, new segregated cycle lanes, and £4.4 million on energy saving measures in buildings alongside renewable energy provision, building on our proud record of having the 4th largest carbon footprint cut in the UK.

 “Just as important are the investments in our local communities, whether that’s a continuation of the refresh of playgrounds across town, extending our successful graffiti cleaning project by a year, plant improvement works at the ever-popular Christchurch Paddling Pool to improve reliably and extend its lifespan, or a major retrofitting of council homes to make them more energy efficient and cheaper to heat for existing tenants, with major improvements coming to the blocks at Wensley Road, Hexham Road and Granville Road.

“Whether through access to modern new transport, leisure, cultural, educational or care facilities, or supporting those under the biggest strain during the cost of living crisis, I believe our new budget reflects our ethos of working for a Reading that realises its full potential while ensuring everyone who lives and works in our amazing town can share in the benefits of its success.”

A recent budget consultation exercise found the top service areas for suggested Council spend were children’s services, adult social care and transport. Last year’s Residents Survey showed road and pavement repairs as the top factor which residents said needed improving. The Council’s proposed budget and associated Capital Programme responds by investing in all of these services. Over the three years of the MTFS, the Capital Programme totals £188 million and the Housing Revenue Account Capital Programme totals an additional £151.3 million.

The MTFS also builds in the delivery of another £9.841m of efficiencies and increased income across the three year period. Savings are being delivered through more efficient delivery of services, including the Council’s new leisure contract and improved IT systems. There is some additional recovery in those income streams decreased by the effects of the pandemic, as well as some new sources of income.

Between 2017/18 and 2021/22, the Council successfully delivered savings totalling £55.5 million.

Commenting on the proposed Council Tax increase for 2023-24, Cllr Brock added:

“We know a Council Tax rise is never welcome, particularly in the midst of a cost of living crisis, but let’s not forget these rises were all but assumed in the Chancellor’s Autumn Statement, recognising that a realistic long-term funding solution for Local Government still doesn’t exist.

“We are moving to protect those hardest hit by inflation with a new discount for residents eligible for our enhanced local Council Tax Support Scheme, which ensures that no one in receipt of such support will have a higher bill next year.

"I’m also proud that, despite the financial challenges, we plan to maintain our financial support for Reading’s incredible voluntary sector, whose role in helping us to reach and support those living on low incomes, as well as tackling widening inequality, becomes all the more essential in these difficult times.”