West Somerset Council is facing a reduction in its Government funding of £323,779 – or 14.1% – in the coming year following the Government’s announcements on the level of support for 2015-16. This reduction comes on top of the large reductions in Government funding West Somerset Council has experienced in recent years.
Due to an increase in money for rural authorities, the reduction in 2015-16 is less than initially predicted – 15.5% – but the Council still faces challenges both now and longer term.
The funding for local authorities is complex, comprising of a number of elements including Revenue Support Grant – direct Government funding – business rates and the New Homes Bonus (NHB).
The NHB is money received for each new home built, or empty property brought back into use, and for West Somerset the allocation for the coming year is £571,015, slightly more than forecast.
The Government is, again, providing a grant to councils that freeze Council Tax – a sum equivalent to a 1% rise – and says any authority planning to increase Council Tax by 2% or more would have to hold a referendum to seek approval from its residents.
West Somerset Council has entered the early stages of budget setting, with councillors looking at increases in fees and charges, and making savings, in order to set a balanced budget for next year.
The Conservative-controlled Council is already making savings through sharing management and staff between West Somerset and Taunton Deane councils.
The Council will be setting its share of the Council Tax and finalising its budget in late February.