Authority plans for maximum council tax rise

Derbyshire County Council has confirmed it is planning the maximum council tax increase allowed without a referendum amid cost pressures "beyond its control".

The authority said it was predicting a £38m gap in its budget, with significant overspends in children's social care in particular.

The Reform UK-led council says it is planning on putting a new package of cuts forward worth about £22m, on top of the "significant saving requirements" put in place by the previous Conservative leaders in the past financial year.

Inflation, rising demand for services and losing out under a new funding formula for local councils put in place by the Labour government have been blamed for continuing pressures.

The plans set out by the council do not include significant job cuts - despite leader Alan Graves recently claiming the council was "20% overstaffed".

Reform UK have controlled the council since May last year.

In its report on its budget plans for the upcoming year, the council said changes to the government's funding settlement for local authorities would mean it had less spending power.

"The key point to note is that the council, being a rural shire county has suffered as a result of the reforms to the settlement that have been introduced," it said.

"In order to maintain funding levels, there will be a need to set increases in council tax at the maximum permitted level."

The council can legally increase council tax by a maximum 4.99% without holding a local referendum.

Like councils across the country, the proposed funding formula the government used to calculate the authority's income levels assumes a maximum increase in council tax.

The final figures for how much more each band will pay will not be published for a number of weeks.

It is expected the council will raise about £29m this financial year from increasing the tax.

The authority only attributes about a £10m increase in its spending power to the government in the form of grants, with the rest mainly coming from hiking council tax.

The government has said more money will be given to council areas with the greatest need this year, as part of a "radical overhaul" of local government funding.

The Ministry of Housing, Communities and Local Government added the first multi-year funding settlement in over a decade would give authorities more financial certainty to help them plan ahead.

The new package of cost cuts planned include a review of fee rates for adult home care, wider use of community support beds, further digitisation of adult social care support and removing long-term vacancies across the council.

Meanwhile, a proposal to close Glossop's household waste tip as part of the proposed cuts has been condemned by the local Labour MP.

John Lawson, Derbyshire's lead councillor for council efficiency or Doge - a new title to reflect Reform's emphasis on the issue - said though the council was in "a much stronger position than it has been", new savings to ensure a balanced budget were necessary.

"Since May we have thrown everything we've got at ensuring this council is running as efficiently as possible", he said.

"The pressures in some areas, especially in children's social care, are incredibly challenging, but careful planning across the council as a whole means we are looking to the future with confidence."

The council is legally required to set a balanced budget each financial year.

An overall budget of roughly £838m will be available to the council for the upcoming year, roughly £40m less than what the authority says is required to meet its needs.

The forecast overspend for children's services stands at about £26m, with adult care facing about a £5m overspend.

Special educational needs services also continues to see "continued growth" in demand, the council said, including home to school transport.

Like the previous bosses, the current Reform UK leaders will also draw on a relatively small part of the council's rainy day fund to keep services afloat, a practice the authority has long acknowledged is "not sustainable".

The plans for the upcoming financial year will be considered over the coming weeks before being officially signed off by the council.

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