As part of the national deficit reduction programme, local government has to bear considerable funding decreases and this looks set to continue into the future.
Herefordshire Council has so far responded well to the challenges faced by reduced funding and has made £21m of budget reductions over the last two years.
As part of the plans for 2013/14, it is expected that council tax will be increased by 1.9 per cent, however this won’t be finalised until the council sets its budget in February.
Councillor Tony Johnson, cabinet member for finance said: “Like all councils across the UK we are facing a significant reduction in funding from Central Government and estimate this to be at least £7.6m
“Although we’ve been able to freeze council tax for the last two years due to national grants, we face continued pressures in adult services budgets and the tax increase will help support this.
“This is still in the planning stage, we can’t actually set council tax or finalise the budget until we know what the funding figures are. But the emerging financial position means there will be difficult decisions ahead.”