Council tax to rise again in Blackpool as town hall leaders seek £23m of savings

But town hall chiefs have avoided any compulsory redundancies in order to make savings as they set out the proposed budget for 2023/24.

Instead, spending will be propped up by taking nearly £10m out of reserves, while efficiency savings, removal of vacant posts, renegotiation of external contracts and increased income generation will also help fill the funding gap.

The resort’s ambitious regeneration strategy will continue as planned despite a rise in borrowing costs.

Last year saw council tax go up by three per cent (including one per cent towards funding adult social care), and this year’s proposed five per cent rise will include two per cent towards adult social care.

Initially savings of £35m had been forecast, but the council has received £12m more in government support than expected.

While facilities including libraries and sports centres have once more been protected from cuts, a big slice of the budget will go towards funding adult social care and children’s services.

But new ways of generating revenue will be introduced including dynamic pricing for car parking in the resort for the first time.

It is also hoped to install more solar panels on council buildings including the Winter Gardens to reduce energy costs.

Council leader Coun Lynn Williams said: “It seems an almost impossible prospect to close a budget gap of £23m.

“We do not want to increase council tax, we are acutely aware of the burden that it may put on households during a cost of living crisis.

“But we desperately need to bring in funding and feel we have no choice, particularly when there is an expectation from Government that this is what we will do to deliver vital services.

“This year we are also proposing to use almost £10m of reserves in order for us to set a balanced budget. However, this is not a sustainable way forward and is not something we would be able to repeat in coming years.

“We need the Government to provide us with a long-term plan that allows us to adequately prepare for the future and keep services running for our communities. Raising funds for services through council tax rises is not the solution.”

Some of the ways the council is filling the funding gap

An extra £1.3m from increasing council tax, plus a review of single person households to weed out people no longer eligible for a discount. Dynamic car parking charges so it will cost more to use key car parks during Blackpool’s most popular events such as the Air Show. This could bring in an extra £400,000 and be used to self-fund events. Save nearly £2m from children’s services by further safely reducing the number of children in care (currently down to 552 from 627 six months ago), and reducing reliance on costly residential placements outside Blackpool. Using local foster carers can cut costs to £800 per week from as much as £3,000 per week. Save £700,000 from adult social care with alternative delivery methods and other efficiencies. Cut energy bills by £483,000 by reaching a five per cent target to improve energy efficiency. Rationalisation of the council’s property portfolio will save £200,000. Some fees will increase, including cremation fees, to cover rising costs and generate £126,000 of additional income.

Coun Williams said despite the pressure on spending, there would be additional investment in activities such as youth services, the real LivingWage will be maintained for care providers and support would continue to help residents with the cost of living crisis.

She added: “Increased costs of living are affecting everyone at the moment, therefore it is vitally important that we propose a budget that protects services.

“In addition to protecting the most vulnerable we have also committed to continuing to pay the real Living Wage to care providers.

“This enables them retain the valued workforce they already have andalso puts them in a better position when looking to recruit new staff.

“We will also continue to push forward with ambitious regeneration plans that will result in a stronger economy and better opportunities for our residents.”

The budget proposals mean net spending of £178m on services in 2023/24 and are due to go before the council’s executive committee on Monday February 6.

Financial pressures on the council include

A fifth more home care packages having to be supplied compared to 2019. £6.5m of extra energy costs mainly to operate leisure centres. £5.5m spending pressure on children’s services. A 6.2 per cent national pay award costing an extra £5m. Higher interest rates have pushed borrowing costs up by £7.5m