Council tax bills in Burnham-On-Sea and Highbridge will rise by 7% from April after the increase was approved by town councillors last night (Monday, January 16th).
Nine councillors voted in favour of the increase while five councillors abstained during a meeting of the full Town Council.
The decision means local residents will see a £7 per year increase in Council Tax on Band D properties to £116.10 on the Town Council’s portion of the overall tax bill.
Cllr Ganesh Gudka, chair of Burnham and Highbridge Town Council’s Finance and Resources Committee, said it had been a “tough decision.”
He added: “It’s been a difficult budget round. Along with everyone else, this council has had to face the impact of cost inflation in key areas. Energy costs alone account for £17,000 of the increase in our cost budget which is a 68 per cent increase.”
The council’s total budget for the coming year will rise to £768,500 from £697,808 last year. While £82,000 will be drawn from the council’s financial reserves, the remainer of the increase will fall on council tax payers.
“We need to recognise that each area of the budget has been reviewed by the relevant committee and those committees have taken a prudent and sensible approach to their recommendations,” he added.
He went on to say that while the council can draw from its General Reserves – which are projected to be £395,000 at the end of the financial year – “we have to strike a balance to make sure we get to a sustainable position in the future.”
“We have budgeted to draw down about £82,000 from our reserves which would leave the projected reserves at the end of next year at around four months of operating costs which is within the range of what is considered acceptable.”
He also said that there might be a possibility of potential savings in future with contract renewals but that the council had to set a precept based on the budget. “If there are savings they would benefit future years or be invested in services,” he added.
Councillors who abstained during Monday’s vote were Cllr Peter Clayton, Cllr Julie Flurry, Cllr Cath Searing, Cllr Alan Matthews and Cllr Andy Morgan, pictured below.
Cllr Clayton explained why he had abstained: “I can’t vote for this precept. I think taking £80,000 out of general reserves is worrying. Once it’s gone, it’s gone. To get that back next year is going to need an incredible increase on the precept if you take it from council tax. There were other options in earmarked reserves – I think they could have been looked at closer. That’s the reason. Most councils prefer to have six months operating figures. Leaving four might be OK, but how are you going to get it back to six months?”
Cllr Gudka responded: “Peter, I recognise what you are saying. We were trying to find a balance between managing the fact that everyone is seeing an increase in the cost-of-living and so Council Tax rises are the last thing anyone wants to see while maintaining services. This is a sensible balance. We will need to use the year ahead to find a way ahead to cut some of our net costs.”
The council’s budget decision on Monday also means The Princess Theatre’s proposed annual budget of £170,553 was approved and that a full business plan will be produced during a ‘strategic review’ in coming months.
Last year, Burnham and Highbridge town councillors voted for a small Council Tax reduction as part of a ‘standstill budget’.
