'High-risk budget' with 4% council tax rise approved by Luton Borough Council in bid to offset 'years of austerity'

During the full council meeting at Venue 360, it was agreed that council tax will increase by 3.99% with 2% ring-fenced for adult social care, .

For 85% of Luton's residents, the new budget means an increase of 88p per week according to the council.

This council tax rise is separate from the increased police precept agreed by Bedfordshire Police and Crime Panel earlier this month.

The Liberal Democrats voted against the budget during yesterday's meeting.

Liberal Democrat group leader councillor David Franks said: "It's a high risk budget. We've seen that shown in many ways.

"It promises things which were promised last year that didn't happen, so why should we believe they're actually going to happen this year.

"It still leaves a gap of £16m or £20m depending on how you add the figures up, which really puts the question in my mind as to whether it's a balanced budget as we are told.

"It makes 2,200 needy people, the poorest people, pay £900 more a year in council tax."

Local authorities have faced growing demand for adult and children's social care, higher costs of accommodation for children with complex needs, and increasing numbers of families needing temporary accommodation.

Luton Borough Council has made savings of £130m over the last eight years, which is allocating an extra £7.4m for adult and children’s social care.

The new budget also includes £700,000 investment in "welfare support for crisis and hardship funds to support residents who are in need of financial help".

And the borough council will continue to provide school meals which costs £473,000 a year.

The council's budget for 2020/21 estimates more than £20m of efficiencies and savings will be needed over the next three years.

Councillor Andy Malcolm, portfolio holder for finance, said: “Reduction in core government funding remains a huge challenge – but one we are determined to address. When the years of austerity began we made the bold decision not to be daunted by the difficulties, but to go on the offensive by transforming every aspect of the way we work.

“Our challenge continues to be ensuring that growth is good news for everyone in Luton and that we make steady progress towards the goal of tackling poverty by 2040.

“In January, we asked residents to tell us what they thought of our draft budget proposals and we tried to incorporate their views into our plans. This included a focus on helping some of the most vulnerable in our town and ensuring important services such as bin collection run efficiently.

“The future is unknown at the moment, but we will get a clearer idea, when the chancellor presents his budget in parliament in March.

"Our commitment to prudent financial management and using inward investment to increase the skills and opportunities of Luton residents remains undiminished and will serve us well as we set our sights on tackling poverty by 2040."

In a statement, the council added: "The budget seeks to deliver on our new vision and commitment to tackle poverty in the town by 2040, while protecting vital frontline services."