COUNCIL tax for Bournemouth, Christchurch and Poole residents will most likely go up by the maximum amount next year, a senior councillor has said.
Mike Cox, cabinet member for finance and deputy leader of BCP Council, said residents should expect to see a 4.99 per cent rise for the 2025/26 financial year.
The increase is the second year in a row the current Three Towns Alliance administration has increased council tax by the maximum amount allowed without holding a referendum.
Cllr Cox said Labour’s budget is going to cost BCP Council more than £10million because of the rise in national minimum wage and national insurance rise.
He said: “It will be going up by the full 4.99 per cent, I haven't set it yet, but I can almost guarantee it will be put up by the maximum.
“The reason is that the increases in national insurances and minimum wage are actually counter act all of the extra money that we will get for that 4.99 per cent.
“We will be using that just on paying for that. We get no more money for anything else, pay rises.
“That’s why we have to go through this year after year trying to reduce services, make things more efficient, where we can to maintain some basic services that we have got.
“We are very lucky in BCP as far as we do an awful lot more than the statutory minimum. Quite a lot of councils up and down the country who are just left on the statutory minimum.
“We spend a lot of money on libraries, community events and cultural events throughout the conurbation.
“We have tried time and time again to maintain those but obviously we do have to make savings to balance the budget.”
He added the national insurance rise will cost the council an extra £4-5million and the same amount to pay for the higher national minimum wage.
The finance chief added during the Q&A: “The challenges of the budget will be significant. We are hoping the government will come forward and let us have some money to pay for that, if not compensate us entirely.
“But history has told us that doesn’t necessarily always take place.”
For this financial year (2024/25), the administration hiked council tax by 4.99 per cent.
Cllr Cox told the Echo in a statement: “Like other local authorities, BCP Council faces significant and ongoing financial challenges as it continues to operate within a difficult economic environment, and demand for council services continues to rise.
“Our priority is to protect key services, support the most vulnerable and provide a sound, stable financial future for the council.
“We have taken significant steps to avoid the serious government interventions that we have seen in other parts of the country, and as we prepare our budget proposals for 2025/26 we must continue to find savings and efficiencies when we can.
“It is important we look at all available options to raise income, including council tax. No final decision can be made on this yet, as that will be taken by full council in February 2025 as part of the annual budget setting process.
“Whilst we recognise the chancellor’s decision to increase National Living Wage will be welcome news to many, this coupled with increases in areas such as employers’ national insurance contributions will put significant pressure on local businesses.
"For BCP Council, it means an increase in costs to deliver services as well as increasing costs within the supply chain.”
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