We are all continuing to see price rises and pressures on our daily budgets - fuel, gas, electricity, food, insurance and general goods and services – everywhere we are seeing what seems like constant increases in costs.
These increases continue to affect all of us - individuals, families, community groups, businesses, and public sector bodies are all feeling the pinch and trying to make savings wherever possible.
The Town Council is no different and continues to face financial challenges of its own in order to balance the books both in the current financial year and looking ahead to next year.
The Town Council continues to review the impact of the ongoing economic difficulties and cost-of-living crisis on our finances ahead of the setting of the 2024/25 Budget in January.
There continues to be inflationary increases in running costs, staff pay increases and funding cuts, increasing capital investment commitments, as well as a fall in balances and reserves.
Compounding all of this, the Council is now also facing a significant reduction in grant on the 2024/25 budget and in future years as a result of the cut in funding from Durham County Council in relation to the Local Council Tax Reduction Scheme Grant. This is funding received by Durham County Council on behalf of Town and Parish Councils. In order for Durham County Council to make savings on their revenue budget they have proposed that this grant is reduced by 50% over three years, equating to around £32,750 per year for the next three years.
Without this cut in funding the proposed core Town Council tax increase would have been 2.65%, which is well below the rate of inflation and as a result of the Council’s ongoing efforts to cut costs, increase income and deliver value for money services.
However as a direct result of the Durham County Council cut in grant of £32,734, the required Town Council tax increase will unfortunately need to be set at 4.38%.
The Council continues to strive to identify and deliver efficiency savings and generate new income whilst at the same time protecting and maintaining all of the facilities, services, and events the residents of Great Aycliffe value so much and trying to keep any required increase in the Town Council element of the Council Tax bill as low as possible.
Did You Know?
Nearly 8 out of 10 residents in Great Aycliffe live in properties rated in Council Tax Valuation Bands A to C.
If you live in a Band A to C property, your current annual Council Tax bill will be between £1,657.57 and £2,210.12 per year, and of this the Town Council receive £182.79 in relation to a Band A property and £243.73 for a Band C property.
Effectively 11p in every £1 of your Council Tax comes to the Town Council to pay for the many valued services we provide.
The remaining 89p goes to Durham County Council, and the Police and Fire Authorities.
2024/25 Revenue Budget and Council Tax Proposals
In overall terms, the Council is proposing a 2024/25 Revenue Budget that protects and maintains all of our current services, facilities, and events next year.
The Council is also aiming to maintain some surplus resources in the budget which will allow it to replenish its balances and reserves. This will help ensure that we can continue to make capital investment in valued community assets such as cemeteries, allotments, parks and play areas, for the benefit of the community, in the coming years.
In order to do so, the Council is proposing that it raises the core Town Council proportion of the Council Tax bill by around £4.85 (2.65%) next year for the vast majority of local taxpayers i.e. those living in Band A properties.
However, as a direct consequence of the cut in Local Council Tax Reduction Scheme Grant funding being imposed by Durham County Council, the proposed increase will regrettably need to rise to around £8.00 (4.38%).
The core Council Tax increase being proposed is significantly below the current rate of inflation and as a result of the Council’s ongoing efforts to cut costs, increase income and deliver value for money services.
We hope you will agree that a monthly increase of £0.40 in the core Town Council element of the Council Tax bill, increasing to £0.67 as a result in Durham County Council grant cut, is a small price to pay to ensure that all the existing services provided by the Town Council can be protected for another year.
There is more information on the Council’s draft 2024/25 budget proposals, should you wish to read this, on the meetings section of the Council’s website.
2024/25 Budget Survey
The Town Council completely understands the financial problems and worries people are continuing to face at this time and has worked hard to restrict the required increase to the Town Council Tax next year, balanced against the need to protect the future financial viability of the Council and continuing to provide all of the services, facilities and events valued by the community.
In light of the continuing difficult times, it is important that the Town Council hears your thoughts and feelings on the priorities we need to focus on in the Town Council budget for 2024/25.
Our annual Budget Survey is your opportunity to tell us what you think.