LCC: 2016 Budget and financial situation

The latest County Council Cabinet meeting was a significant step in setting the council's budget for next year. The Cabinet agreed the budget proposals which will now be put to Full Council for a final decision in February.

People may have heard that the Cabinet is also recommending the county council's share of the Council Tax bill is increased by 3.99%. This is the maximum increase a council can agree without calling a public referendum. For several years the limit has been 1.99% but this year the Government has told councils they can make an increase of a further 2%, providing the money is allocated to social care services.

Often members of the public are understandably confused by the notion that councils are increasing tax whilst at the same time having to implement cuts. The problem is that around half of our funding comes direct from the Government, and that money continues to be cut back significantly on an annual basis. This is at a time when demand continues to increase, especially for our adult services which account for a significant part of our budget.

However, even if agreed by Councillors, the 3.99% increase in council tax would not even nearly offset the cuts to the overall budget.