Council tax hike and higher parking charges proposed in district council's budget

By Philippa Davies

23rd Jul 2021 | Local News

Teignbridge council needs to raise money to tackle its budget deficit. Picture: Pixabay
Teignbridge council needs to raise money to tackle its budget deficit. Picture: Pixabay

Car parking charges and an increase in the cost of the green waste subscription service are among the initial proposals put forward in Teignbridge to address the ongoing impact of Covid-19 on its budget.

A £5 rise in council tax is also proposed, as is the need to make ongoing efficiencies using 'invest to save' where possible, as Teignbridge District Council tries to address its budget deficit.

The existing green waste subscription costs £40 per person, but the initial proposals, put out for consultation by the council's executive committee this week, outline that while the subscriptions have seen an increase in customers over the past year, the charge has not been increased for two years. It is proposed to increase the fee to £45 in 2021/22, which will still be below the national average.

Car parking charges are proposed to increase to give extra gross income of £94,000 from the 2020/21 base budget, which equates to an increase of just over two per cent, the report says.

Rises of between 10p and 20p per tariff for the majority of car parks are proposed in the draft budget, although some 30 minute parking tariffs remain unchanged.

And the draft proposals could also see tariffs introduced at the Kingsteignton Road in Newton Abbot car park, although no final decision as to whether the car park would be added to the charging schedule has been agreed.

Among the main changes to fees and charges are:

Freezing charges at Newton Abbot indoor and outdoor market, having been reduced last year.

Changes in car parking charges to cover inflation, business rates and card payment charges which increases income overall by 2%. Charges will be increased generally across the majority of car parks including permits.

A £5 increase in the green waste subscription, which has been frozen for two years, taking the annual cost to £45 a rate that remains below the national average.

The proposed changes reflect market rates, the cost of delivering some services and comparisons with neighbouring authorities, councillors were told, although the meeting heard that it was too early to say what impact the third Covid lockdown will have on finances. Any further changes to income projections will be considered before the budget proposals are finalised, councillors heard.

Cllr Alan Connett, leader of the council, stressed that these were the initial proposals, but as they do not know what the impact will be on council and finances of the third lockdown, the budget plan will evolve and develop.

He added: "We will need to keep that under constant review, and may have to bring forward new proposals, but this is a dynamic budget and we are looking to invest in the things that are important to the community."

Cllr Richard Keeling, portfolio holder for corporate resources, added: "We are not out of the pandemic yet and the impact of Covid-19 has resulted in a budget gap for this year and future years, and we have other uncertainties on future demands.

"But despite the loss of incomes, as part of prudent financial management, the budget delivers the services that Teignbridge needs."

Council tax in Teignbridge is set to rise by 2.85% or £5 to £180.17. This is the annual charge for an average band D property and the increase equates to less than 10p a week. A £5 increase has also been assumed for 2022/23 and 2023/24.

The report added: "Other budget pressures anticipated and included are for ash dieback costs, reduced income streams from Covid-19 restrictions and general activity levels. A Covid contingency has been included to cover these impacts which will be partly met by the continuance of the income compensation scheme by Government for April to June 2021.

"There is also the promise of a further tranche of general funding and any other gap can be met by using earmarked reserves, with any additional shortfall in the year being investigated and further savings being made in the year."

The executive unanimously agreed to put the draft budget out to consultation, where it will be considered by the two overview and scrutiny committees, before returning to executive and then to full council for a final decision to be made.

     

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