10/01/2022 - Another challenging year for us all

It will be another challenging year for the council too.

Last year was difficult as we had to readjust our finances to take into account the impact of the loss of income from the airport due to the pandemic. This came against a backdrop of a huge reduction in government funding during the years of austerity from £120m in 2010 to its current figure of £11m.

Despite the difficulties, we are determined to provide the best possible value for money to residents as we deliver on our Luton 2040 vision of ensuring our town is a place where everyone can thrive and no-one has to live in poverty.

We provide over 700 important services on your behalf, These range from road maintenance, register office services and licence authorisation, to organising bus passes, providing business advice and adult learning courses.

In 2022/23 we anticipate spending £596m on these services and longer term plans for the benefit of the town. Of this, by far the largest proportion will be spent on caring for the vulnerable – families, children and adults in need. Along with money for educating our children, we expect this to account for nearly 60 per cent of all expenditure.

The Covid crisis still has a huge bearing upon our planning. However as  the pandemic progresses, it will continue to have an impact on our finances as we rightly consider what levels of support the most vulnerable people in our community might continue to need in the coming year. The government’s social care reform agenda is one area which has a dramatic effect upon our finance planning, as we care for those who have especially suffered through health and isolation challenges over the past two years.

The council tax you pay, which accounts for 15 per cent of our spending, is vital. 

In order to provide the right services, we are proposing to raise this by just under three per cent. Most councils across the country have to do this to balance their budgets. This figure includes an amount, known as a precept, for social care of one per cent. Not only will this keep our rates the lowest in Bedfordshire and one of the lowest rates for a Unitary Council in the country, but we are confident this will enable us to avoid any additional reduction in the important public services we provide.

For a council band B property this rise will mean a 72p increase per week.

In the past two years we have had to make significant budget savings. This has meant that for this financial year the savings required have been reduced to minimal levels.

Consequently there will be minimal impact on frontline services.

We also propose to invest an additional £2m in services such as street cleansing, enforcement and highways which we know is important to our residents after having to cut services in recent years.

Councillor Andy Malcolm, portfolio holder for finance, said: “For those of us who live in Luton the past few years have been difficult in so many ways. Despite the hardships – which include significant financial ones for many – both council and residents have shown amazing resilience, dedication and sacrifice to protect the most vulnerable and find a way through the challenges we have faced.

“In line with our vision, this budget sees the beginnings of investment in our town centre and increased resourcing for street cleansing.

“With inflation rising, the weekly shop and energy bills increasing too, we are all having to tighten our belts. The council is no exception. Nevertheless we believe this year’s budget proposals underscore our determination to deliver on our vision for Luton to be a town where no one is stuck in poverty; a place where caring for those less fortunate is right at the top of our agenda.”

Follow this link to the full draft budget papers and scroll down to agenda item 9: ‘Revenue Budget and Capital Programme’ for our full budget proposals for 2022/23.

We always welcome feedback and questions on all aspects of what we do and our budget proposals are included in this.

If you have any comments or questions, please send them to budget22/[email protected] by 1 February and we will publish responses before a final decision is made by councillors on next year’s budget later in February.