Luton council says it has 'no choice' as it proposes council tax increase

Council taxpayers in Luton face higher bills, as the borough council is set to increase its share by the maximum amount it can without the need for a local referendum.

The local authority anticipates a five per cent rise, while contributions for policing and fire and rescue services in Bedfordshire are also due to go up in 2024/25.

A public consultation process will be arranged by LBC, but ongoing financial pressures indicate it has little room for manoeuvre.

Labour Northwell councillor Rob Roche said in a statement: “The difficulties we face at a personal and family level have been felt by the council, as we seek to do our best for the town’s residents.

“Inflation as prices in shops rise and high interest rates are placing an almost intolerable burden upon many in Luton struggling with basic needs.

“LBC has been facing increasingly severe pressures on its finances over a number of years. Price increases impacting on each of us, affect the council too.

“The growing demand for housing, adult social care and children’s services, in particular, are causing many local authorities to come under huge financial strain.

“At a time when people need more help and assistance than ever before, the gap between the resources central government is prepared to offer and the reality on the ground has never been greater.

“We’ve had £160m taken out of our budget during the past 12 years, meaning drastic savings year-on-year. The most recent financial settlement from government isn’t enough to allow us to help residents as fully as they deserve,” explained finance portfolio holder councillor Roche.

“As we set out our financial plans for the next 12 months, we’re legally bound to balance incoming funds with outgoing expenditure. We currently face some significant pressures, including:

• £3m for temporary accommodation;
• £2m for special educational needs and disabilities (SEND) transport;
• £2m for adult social care placements;
• and £2m for children placement costs.

“Regretfully such factors mean we’re left with no choice but to raise council tax by the maximum amount we can of five per cent, without holding a local referendum on the issue.

“We’ll also have to raise charges for some of the important services we provide. The police and fire services are also proposing increases to the amount residents pay them.

“Both of these vital services face serious financial challenges as well. Even with the increase, we’ll continue to operate our council tax support scheme for those struggling the most and unable to afford paying this.

“Charges could rise for some services, mainly in line with inflation,” added councillor Roche. “Savings and cuts next year of £5.3m are necessary to balance the budget.

“We’re looking to minimise adverse impacts on residents, such as through efficiencies and by raising income from external sources.

“Despite these severe pressures, through revenue raised from council tax, commercial income, fees and investments, we expect to spend about £215m in 2024/25 across more than 700 services LBC provides.”

The council is arranging two consultation events in The Mall on Thursday 18th and Saturday 20 January from 10am to 5pm.