Horsham District Council’s Cabinet meeting on 29 January endorsed proposals to deliver a balanced financial and capital budget for the year ahead which will achieve the lowest Council Tax charge in Sussex. It will also provide support for the most vulnerable of the District, whilst investing in capital and environmental projects in line with its Council Plan priorities.
The decision means the proposed budget for 2025/26 will now go before full Council on Monday 24 February for a final decision.
Despite the effects of high levels of inflation over the last two years which have increased gross costs by £1m each year, the Council is still on course to deliver a balanced budget for the financial year 2025/26.
Sound financial management and healthy reserves put the Council in a good position to continue to help vulnerable residents who are struggling with the cost-of living crisis, take action to meet the environmental challenges of the climate emergency, and still invest in significant capital projects.
Following a public consultation, the Council increased its support for vulnerable residents to help them pay their Council Tax. Residents on the lowest income in Horsham District will now receive up to 100% relief on their Council Tax, an increase from the current 90% maximum discount.
Other changes to elements of the means tested criteria within the Council Tax Reduction Scheme were also agreed which will widen eligibility for residents. We have increased the support to cover the equivalent Council Tax of a property valued at Band E (previously Band D) and increased the limit on the savings people can have before we can help them, from £6,000 to £10,000.
The budget will also accommodate a significant £13.8 million capital programme, investing in infrastructure and facilities for residents and expanding the work being undertaken on achieving net zero carbon emissions by 2030 which is one of the Council’s key objectives.
It was agreed that fees and charges across its services would increase, raising Council Tax in the District by £4.67 a year (2.7%) on a Band D property.
This will allow the Council to maintain really good quality services and voluntary grants to community groups whilst protecting all its non-statutory services. These include for example, the work undertaken by our Community Services team that is so greatly appreciated by our residents and supports residents who are struggling with living costs.
In 2023, the Government mandated the collection of food waste by March 2026 which will add an estimated £1.8m per annum to costs although some Government revenue funding towards this is anticipated. This indicatively contributes to a forecast budget gap of some £3.7m by the end of the decade. This is before the significant cost of moving towards net zero has been considered. The Council will continue to work to eliminate this gap year by year.
Horsham District Council Deputy Leader and Cabinet Member for Finances and Resources Cllr Mark Baynham commented:
We know that this is a difficult time for many of our residents and we don’t take the decision to raise Council Tax lightly.
Despite these relatively modest increases, the Council will continue to charge the lowest Council Tax in Sussex and remain in the lowest quartile in the UK whilst maintaining high quality services for residents.
The increases are largely due to inflation, salary increases and an increase in the employer National Insurance contributions.
We will however, continue as a priority to support those most in need through our positive changes to the Council Tax Reduction Scheme and our ongoing community support programmes.
Every penny of public money matters, and we are committed to delivering high quality services and protecting those most vulnerable in the District.