Council Finances after a Challenging Year
The EBC Residents Group/Lib Dem Administration put forward for approval a detailed Budget for 2021/22 at the Council meeting on 24th February 2021. This sets out the challenging circumstances the council is facing and the share of this year’s council tax increase which will come to Elmbridge.
“The COVID–19 pandemic has hit all local councils’ budgets, and, contrary to earlier promises, central Government has only covered part of the extra costs and the lost income arising from the impact of restrictions on business activity this financial year. The estimated net cost to the Council in this financial year 2020/2021 is about £4 million.
During the pandemic the council has paid out over £30 million in direct support to businesses, awarded over 100 grants to help independent retailers adapt to social distancing, supported over 25 shops to sell on-line with the Digital High Streets grant and helped launch over 20 new businesses over the last year.
Fortunately, the Administration has been building reserves for day to day expenditures over recent years. As at 31 March 2020, the Council’s revenue reserves (including the General Fund, but excluding Statutory Reserves and CIL funds) stood at almost £23 million, compared to almost £19 million as at 31 March 2016 just before the RA/LD Administration took office.
The Budget for the coming year is a balanced Budget which incorporates over £2.3 million of savings, including a freeze on Councillor Allowances. In addition, like almost all the other Surrey Districts and Boroughs, the share of the overall Council Tax bill will be increased by £5 a year for a Band D property, which equates to an increase of 2.2%. £37.62 of the total increase in your (Band D) Council Tax bill, roughly two thirds of it, goes to Surrey County Council, a percentage increase of 2.5%. £15 of the increase (5.5% in percentage terms) goes to Surrey Police. Less than one tenth of the increase in your Council Tax bill is kept by Elmbridge Borough Council.
The Administration believes that the Budget for 2021/22 is constructed on a prudent basis which recognises the uncertainties inherent in the current economic situation. While further use of revenue reserves is expected in the coming year, the central forecast is that revenue reserves will not fall below £12 million as at 31 March 2022. “