Council faces growing budget deficit

Steep price increases and rising levels of inflation are pushing the District Council's finances in to the red, with almost a £5m deficit predicted for the coming years.

In a report to the council's Executive, Cllr Geoffrey Williamson said that savings of £7m would need to be found in the years to 2028.

Note the revised savings requirements of £0.812 million in 2023/24, £2.050 million in 2024/25, £2.114 million in 2025/26, £0.792 million in 2026/27 and £0.268 million in 2027/28.

Councillor :: Geoffrey Williamson, Executive Member for Financial Sustainability

The council has saved over £5m since 2020 and is continuing efforts to transform how it delivers services, focused on improved ways of working to generate savings. 

Proposals include revised changes to car parking tariffs, which include deferring the removal of free parking periods and introducing Sunday charging at a flat all day rate - and putting evening charges in place up to 8pm.

The council are also having to review changes to waste collection, including the introduction of weekly food waste collections. This would divert food waste, which decays and produces odour more quickly, from the black bin so that non-recyclable waste can be collected every three weeks. As well as reducing waste and increasing recycling levels, the move will help the council cope with an expected cost increase of up to £1.5m.

Councillor Geoffrey Williamson, Executive Member for Financial Sustainability at East Herts, said: "Over the coming months, our top priority is to consider how best to meet the scale of the financial challenge that lays ahead; it is a position that we share with councils everywhere.

"As we look to agree changes to parking and waste collections next Tuesday, we are taking a step towards that, but we know that balancing our budget in the years to come will require tough decisions to be made.

"In facing these difficult choices, it is vital that we keep listening to our communities, as we have on the parking plans, so that we continue to protect the services our residents rely on most and shape a better future for our district together."

The news comes after the County Council revealed a £23m shortfall in its finances back in early September.