Council 2021 / 22 budget proposal announced

There will be no cuts to services in Hull but council tax will rise by 4.99 per cent, city council leader Steve Brady has said in his proposed budget statement for 2021 /22.

The statement says savings will be made through internal council cutbacks, but this will not include redundancies.

Council tax will rise by 4.99 per cent; however, those receiving council tax support will be protected from the rise through use of the Hardship Fund.

Councillor Brady said: “The coronavirus crisis has, and continues to dominate the work of the council and the financial outlook for the council. The costs relating to the pandemic will continue into the 2021 / 22 financial year and it is expected there will be an impact into future years as well.”

The key points of the statement include:

The financial position for 2021 / 22

Over the last 10 years the government grant to Hull City Council has reduced by £130m (a 55 per cent reduction).

In 2021, Hull will receive an additional £20m of government Covid-19 funding, meaning the council’s financial position has been dramatically improved in the immediate term.

To ensure the council can balance the budget at the end of 2021 / 22, the statement proposes £3m of internal savings need to be made over the next year, through filling vacant positions only where there is a strong business need, and through non-pay savings including energy and automation.

The budget proposes additional funding to meet increasing care costs in Children, Young People and Family Services (CYPFS) and Adult Social Care (ASC). There would be £10m being allocated to CYPFS to meet the needs of a continuing growing number of looked after children, from approximately 800 to approximately 900. There would be £4.5m allocated to ASC to meet the pressures which have arisen due to the impact of the pandemic.

Council tax

The budget proposes a council tax increase of 4.99 per cent from April, which includes a 3 per cent ASC precept. For people living in a Band A property, this will be an increase of 91p a week for council services, and an annual increase from £950.65 in 2020 / 21 to £998.09 in 2021 / 22.

Discounts continue for young people leaving care and Armed Forces personnel.

The Hardship Fund will be used to assist those households that receive council tax support. Around 25,000 households on council tax support will receive a £30 discount on their bill for 21 / 22.

Council housing

The budget outlines rent rise of 1.5 per cent for council houses.

The council is the city’s biggest landlord with around 23,500 properties. There will be 480 new council homes built over the next five years, with 170 of those to be built in 2021 / 22.

Capital funding

The council will continue with the capital projects committed to in previous budgets, including essential improvements to roads, schools, parks, homes and neighbourhoods. Projects include East Park splash pad, Beverley Road Baths, Albert Avenue Baths, the Ice Arena, private housing frontages, roads and bridge maintenance, and creating additional special educational needs and disability (SEND) provision in mainstream and special schools.

It is proposed that additional capital investment in 2021 / 22 is committed for street lighting, Chapman Street Bridge and Stoneferry Road works, which aims to reduce congestion by 50 per cent and improve air quality.

Read the full budget statement proposal, which will be discussed and debated at a full council meeting on February 25, here.