Stratford District Council leader warns that increasing inflation could impact on spending plans over the coming year

The leader of Stratford District Council has warned that increasing inflation could impact on spending plans over the coming year.

Cllr Tony Jefferson (Con, Welcombe) issued the stark warning during this week’s full council meeting when a £5 increase to council tax for an average band D property was announced.

In issuing his budget statement he said: “Council tax increases are capped - in our case at £5 which equates to a 3.3 per cent. We are facing an economic backdrop of uncertainty and volatility - consumer price inflation is now 5.5 per cent, a year ago it was below 1 per cent.

“The assumptions underpinning our budget don’t fully take into account this level of inflation. Most of the work was completed prior to Christmas and we also need to remember that the 54 per cent increase in the energy price cap is not yet reflected in the inflation figures. Increasing inflation could easily impact on our spending during this current financial year.”

He also referred to the introduction of the green waste charge and the financial boost it had given the council’s coffers.

Cllr Jefferson: “It should be obvious that without that charge, there would have to be a bonfire of services to balance the budget over five years and that clearly demonstrates the importance of taking a strategic long-term view.

“Sound strategic decisions enable us to continue to provide valuable services - a prudent budget created in the teeth of uncertainty, unpredictability and volatility.”

Cllr Trevor Harvey (Con, Shipston North), the council’s portfolio holder for resources, admitted that national and global issues could also have an impact.

He told the meeting: “The economic backdrop is very mixed. Internationally there is the risk of war in Europe and there may be repercussions of all sorts. Domestically we have suffered the economic and social consequences of the Covid-19 pandemic over the past two years.

“The Government has borrowed precious amounts of money to meet the costs to the NHS of treating those who have fallen ill and of the vaccination programme that has protected so many. Vast amounts of money have been borrowed to meet the costs of the furlough scheme that has protected so many jobs and provided financial support to businesses.”

As part of the council’s medium term financial plan it was agreed that £500,000 be allocated aligning the ICT system with that of Warwick District Council and that a Liberal Democrat proposal for £50,000 of practical energy and financial advice for residents be adopted.

The increase in council tax - the Stratford District Council element of which will be £154.12 for a band D property - was approved with 21 voting in favour and eight abstaining. The budget was approved with 19 votes in favour and 11 abstaining.