ST HELENS Council’s cabinet is expected to endorse a council tax hike this week.

Senior councillors will meet at St Helens Town Hall on Wednesday and will be asked to approve, in principle, a 3.99 per cent council tax increase for 2020-2021.

The council’s latest budget report says the proposed increase will generate an extra £3million for the authority and help avoid further service cuts.

“An increase in council tax of 3.99 per cent will generate an additional £3million to fund some of the demand pressures the council faces in providing its statutory functions, and would avoid the need for further reductions in service delivery,” the report says.

The proposed rise comprises of a 1.99 per cent council tax increase and a 2 per cent adult social care precept.

While the increase would need to be approved by full council, the report says the estimates in its latest budget model have been calculated on the assumption of a 3.99 per cent rise.

In October, cabinet members were ordered to come up with detailed portfolio budget options to close the forecast budget gap of £5.4m for 2020-2021.

During that meeting cabinet agreed to set a one-year budget for 2020-2021.

This was after Chancellor Sajid Javid announced a one-year funding settlement for 2020-2021 instead of the usual three-year spending review.

The council’s current budget is the final year of a multi-year budget settlement from central government, which resulted in a need for £20.6m of savings to be found over the three years.

The uncertainty facing the authority over the coming years has been stressed by a number of senior figures in the council over the last year and has been reiterated in the latest budget report.

“The uncertainties that have surrounded local government’s financial position, and have been previously reported to cabinet, remain,” the report says.

“The assumptions used when assessing the medium-term financial position of the council as part of the October 2019 budget report are still considered as being reasonable and the forecast of its medium-term financial position remains broadly unchanged.

“This modelling identifies that actions to eliminate the underlying use of reserves and balances carried forward from 2020-2021 will need to be implemented, and that without appropriate action there will be a continuing shortfall between the resources available to the council from local fees, charges and taxes and government funding when compared to the need to spend on services.”

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On Wednesday, cabinet will be asked to press ahead with the required budget options and any “further actions necessary” in relation to closing the budget gap, which is now forecast at £4.975m.

A consultation on the budget, seeking views from all residents, started on January 17 and will run until February 12.

The council will run a social media campaign throughout the period to highlight the extent of the budget challenge and to encourage residents to share their views.

The report says other key partners and stakeholders have been contacted separately to ask for their views on the budget proposals.