Final budget proposals for 2024-2025 approved by North Northamptonshire Council
Finance22 February 2024
Final budget proposals for North Northamptonshire Council for the next financial year were approved at a meeting of the council earlier today.
Draft proposals were initially agreed by the Executive on December 21, and these were subject to a detailed consultation process and scrutiny before final proposals went before Executive earlier this month.
Overall, the net revenue budget for 2024/2025 is £375.3 million. This money provides a range of services to residents and businesses across the area including care to vulnerable adults and children, education, the disposal and collection of waste, highways maintenance, economic development, housing and support for those that are homeless.
The council also has a programme of capital investment totalling £113.1m over the four-year period 2024-28 across a number of schemes including investing over £49.1m into highways, £12.3m for schools, £10.7m to support disabled facilities, £9.1m in improving digital infrastructure, £2.7m from the Corby Towns Fund and £2.9m for electrical vehicle infrastructure.
A commitment to maintain vital service provision has seen the council invest an additional £62.6 million into services to protect the most vulnerable in our communities and address a growing need for services.
This last year has been extremely tough financially. We have seen a significant increase in the need for, and costs of, social care for both adults and children and this is placing an unprecedented financial pressure on the council.Jason Smithers, Leader of the Council
Despite this challenging situation, we have again been able to set a balanced budget for the year ahead. This means we will only spend what we can afford. At the same time, we are planning to both protect and invest in local public services.
Delivering efficient, effective, and affordable public services is a commitment we have made to everyone in North Northamptonshire. We have been making sound progress on this, but we will of course continue to do more.
Council Tax
Government has permitted local authorities to increase the Council Tax rate by 4.99%, including 2% for the adult social care precept, in recognition of the difficult financial climate and increased inflationary pressures.
The authority will be increasing Council Tax to the amount allowed by Government of 4.99%.
This increase will contribute around an additional £9.5m per year towards inflationary and demand lead pressures to enable services to be maintained and will represent a Band D level of Council Tax for North Northamptonshire Council of £1,740.22 for 2024/2025.
This is an annual increase of £82.71 (equivalent to £1.59 per week) from the Band D Council Tax level set in 2023/2024.
Around 57% of properties in North Northamptonshire are in Council Tax Bands A and B which will see an annual increase of £55.14 (equating to £1.06 per week) and £64.33 (£1.24 per week) respectively.
Increasing Council Tax has the advantage of providing stable funding for the future, helping to further protect services.
This Band D figure does not include the Council Tax for individual Town and Parish Councils or the Council Tax set for Fire and Police by the Northamptonshire Police, Fire and Crime Commissioner.
There is no change to the Local Council Tax Support Scheme which will continue at 25%.
Housing Revenue Account
The Housing Revenue Account (HRA) is a separate ring-fenced account within the council for the income and expenditure associated with its housing stock.
The HRA does not directly impact on the council’s wider general fund budget or on the level of Council Tax. Income to the HRA is primarily received through the rents and other charges paid by tenants and leaseholders.
This year’s HRA will see a balanced budget for the two Neighbourhood Accounts.
There will also be a rent increase of 7.7% for the next financial year, which accords with the Government’s rent setting policy for 2024/2025. Any funding received by the HRA is retained within the HRA and will be used to support housing improvements and maintenance.