Inflation puts council finances under pressure

Hertfordshire County Council is facing a £23m shortfall this year as inflation and increasing costs eat in to the council's budget projections.

Streetlighting costs alone have increased by 60% - an extra £2.3 million a year to keep the lights on after dark.

The Council’s Resources and Performance Cabinet Panel will be asked to discuss a new financial report next week, which details options for making 'in year' efficiency savings and how the council can access contingency funds and reserves to bridge the gap this year.

The pressures have been caused by soaring inflation, resulting in greatly increased costs alongside high post covid demand for key services such as supporting children with special educational needs. The war in Ukraine and restricted gas supplies means that global uncertainty is having a huge impact close to home. 

Council Leader Richard Roberts said: "Financially, the council is a very well managed organisation, making a great start to the financial year with a balanced budget. Last year we came out of the pandemic able to offer a significant covid recovery package supporting many residents and businesses across the county and investing in services our residents value. However the last six months have seen global events outside our control unfold, with everyone in the country now dealing with increases in the cost-of-living. This was why we set out our ‘Cost of Living’ support in July. Our residents are struggling with rising bills and we, like every council in the country, are facing a similar picture. We will also be doing everything we can to offer support to our most vulnerable residents and offer much needed advice and guidance for everyone. I will be writing to the new Prime Minister congratulating her and asking that she considers the pressures we face as she balances need across the country and also working with the Local Government Association (LGA) and County Councils Network (CCN) to make representations on behalf of the county. At a time when our residents and businesses are facing unprecedented challenges I want our services to continue to be efficient, helpful and above all tied in closely with our partner district councils, voluntary and faith organisations. Only together can we get through this."