Spending plans 2024/25
The level of council tax
Council tax is the main source of locally raised income for Cheltenham and is used to meet the difference between the amount we propose to spend and the amount we receive from other sources such as business rates and government grants.
The proportion of our funding raised from council tax has gone up significantly in the decade to 2023 as funding from central government has decreased sharply. As a result, council tax is an increasingly important way to pay for local government. This is reflected in the government's decision to allow district councils to increase council tax by £5 per year or up to 2.99 per cent, whichever is higher. Locally we have had to consider the levels of expected growth in Cheltenham and how affordable any increase in council tax would be for our residents.
The average council tax you will pay for services provided by Cheltenham Borough Council is £237.68 for a Band D taxpayer. This is an increase of £6.90 or 2.99 per cent over last year, or 13.2 pence per week.
Service delivery
We want to continue delivering our services at a high standard to residents, and to protect front-line services with the reduced funding available.
Throughout the financial uncertainty caused by the pandemic and the current cost of living crisis, we have continued to show our commitment to make Cheltenham a place where everyone can thrive. Cheltenham Borough Council has invested in a number of activities over the last year to drive sustainable growth and investment in the town:
- An additional £3.3m investment into the Minster Exchange (MX) to complete the build of a cyber-innovation hub and cultural venue by the Cheltenham Minster (St Mary's)
- £71k of improvements to the public space in the Strand and Cambray Place
This has come at a time when our council has experienced the same financial pressures as you may have at home, from rising energy prices and interest rates to double-digit inflation on many of our contract costs.
In February 2023, the council approved our new Corporate Plan for 2023-27 where we re-commit to our key priorities. From investment in Golden Valley to make Cheltenham the cyber capital of the UK to supporting our most vulnerable communities through our No Child Left Behind initiatives, we will continue our focus on delivery despite the ongoing financial turbulence.
The plans set out in the 2024/25 budget, including the reserves and savings strategies, are key to ensuring our council continues to be financially stable through the medium term as government delays continue around changes to local authority funding.
Working together to plan for Cheltenham’s future
A formal budget consultation took place during December 2023 and January 2024. We encouraged interested parties including businesses, tenants, residents, staff and trade unions to comment on the budget proposals. Our response to these submissions was published as part of the final budget papers in February 2024.
Spending plans for 2024-25
|
|
2023-24 Amount in £ |
2024-25 Amount in £ |
|---|---|---|
|
Chief executive |
3,492,000 |
3,423,000 |
|
Communities and Place |
12,347,000 |
12,884,000 |
|
Finance, assets and regeneration |
7,814,000 |
7,304,000 |
|
Financing and investment income and expenditure |
- 2,019,000 |
-1,684,000 |
|
Capital charges |
-3,308,000 |
-2,455,000 |
|
Use of balances and reserves |
137,000 |
-189.000 |
|
Savings |
-1,300,000 |
-2,741,000 |
|
Growth |
- |
158,000 |
|
Transfer to/from general balances |
331,000 |
630,000 |
|
Net spending |
17,494,000 |
17,330,000 |
|
Financed by: |
2023-24 Amount in £ |
2024-25 Amount in £ |
|---|---|---|
|
Government grants |
-5,146,000 |
-5,871,000 |
|
Business rates |
-2,241,000 |
-1,063,000 |
|
Collection fund |
-34,000 |
8000 |
|
Which leaves the remaining council tax requirement of: |
10,073,000 |
10,404,000 |
How our budget compares with last year
|
|
Amount in £ |
|---|---|
|
Projected net spending in 2023-24 |
17,494,000 |
|
Increased cost of services |
1,092,000 |
|
Growth |
158,000 |
|
Savings |
-1,441,000 |
|
Reserves/other |
27,000 |
|
Projected net spending in 2024-25 |
17,330,000 |
For further information on the budget including a full list of improved services and savings please contact financial services on 01242 775033. A full breakdown of the budget is available on our budgets and spending pages.