08/01/2024 - Engagement events arranged as council publishes draft 2024/25 budget

We are holding two special events in the Mall this month. Come along to talk to councillors from the council’s executive committee along with senior council officers and share your experiences and thoughts around the issues facing us all.

A statement from Councillor Rob Roche, portfolio holder for finance:

Inflation has meant that prices in the shops are still rising and high interest rates are placing an almost intolerable burden upon many in Luton, who are struggling with some of their most basic needs. The difficulties we all face at a personal and family level have been felt for us as a council, as we seek to do our best for the residents of the town.

Luton Council, like many councils up and down the country, has been facing increasingly severe pressures on its finances over the past number of years. Price increases that affect each one of us, touch the council too. In addition, the growing demand for housing, adult social care and children’s services in particular are causing many councils to come under huge financial strain.

We do not believe that central government provides us with adequate funding for the hundreds of important services we are required to provide and residents rely on. At a time when people need more help and assistance than ever before, the gap between the resources central government are prepared to offer and the reality on the ground has never been greater. In the past 12 years we have already had £170m taken out of our budget meaning drastic savings year on year.

Put simply, the most recent financial settlement from government is not enough to allow us to help residents as fully as they deserve.

Each year, whatever the circumstances, we are required by law to present a balanced budget.

Every year as we set out our financial plans for the next twelve months, we are legally bound to balance incoming funds with outgoing expenditure. This means that yet again we are being forced into making decisions we wish we didn’t have to.

We are currently facing some very significant pressures, in particular

Factors such as these mean we are left with no choice but to raise council tax by the maximum amount we are able to without holding a local referendum on the issue. In addition, we will have to raise charges for some of the important services we provide for residents.

Regretfully, we anticipate having to raise council tax by the maximum amount we are able to (five per cent) do so without asking for a local referendum. At the same time the police and fire services are proposing increases to the amount residents pay them.  Both of these vital services are facing serious financial challenges as we are. Even with the increase, we will continue to operate our council tax support scheme for those who are struggling the most and are not able to afford council tax.

In addition, we are looking at raising charges for some services, mainly in line with inflation.

In the light of this lack of support from central government we will need to make savings and cuts next year to the tune of £5. 3 million in order to balance the budget. As always we will be looking at ways we can do this in a way that minimises adverse impacts on residents, such as through efficiencies and by raising income from external sources.

Despite these severe pressures, through the revenue we will raise through council tax, commercial income, fees and investments, we expect to still spend approximately £215 million in 2024/25 across the 700+ services that the council provides for the people of Luton.

This is your town and, as always, we are keen to talk with you and hear your thoughts as we face this financial crisis together. If you are able, please come to one of the events mentioned above.

Alternatively contact your local councillors, many of whom run regular surgeries for residents in their wards. Find out who your councillors are by clicking here.

If you have any thoughts, ideas or suggestions regarding our budget plans for the coming year please email us at [email protected]. We will respond to questions publicly – please check the council’s website and social media feeds for details.