RATEPAYERS in Northwich and Winsford are facing a council tax increase of 3.99 per cent from April to help fill a £23.5 million funding gap.

Draft budget plans for 2020-21 have been published online by Cheshire West and Chester Council ahead of a scrutiny meeting next week.

They include a 1.99 per cent increase in the basic rate of council tax – plus a two per cent increase allocated for adult social care.

CWAC’s budget report, which will go before councillors on three occasions next month, says: “The council has a proven track record of strong financial management which has enabled the delivery of significant savings to the local taxpayer whilst still investing in priority services.

“This budget has yet again been set against a backdrop of considerable financial uncertainty and unprecedented challenges for local authorities.

“There is an increase in demand for adult social care both in terms of the numbers of individuals requiring care and support and the increasingly complex needs of those individuals.

“Equally, there are increasing pressures on all councils due to the numbers, complexity and cost of looked after children.”

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CWAC expects to rake in an extra £3.7 million from the 1.99 per cent increase.

The adult social care precept, which was allowed by Government in the Chancellor’s autumn statement last year, is expected to bring in £3.8 million specifically for that service.

Further cash to help meet the funding gap include an additional £3 million from an increase in the number of homes paying tax to CWAC and £2.5 million from additional business rates.

An extra £3.3 million will be found from a surplus in the council tax collection fund – cash expected to be left over from the current financial year.

That leaves £7.2 million to be found from cost savings in 2020-21, which CWAC expects to achieve, meaning the books should be balanced on March 31, 2021.

However, CWAC officers are less certain about their finances beyond the next financial year, as the Government has so far only announced its spending plans for 2020-21.

CWAC’s budget report suggests the council is facing a potential budget black hole worth between £9 million and £19 million in 2021-22.

It says: “Bridging a gap of this scale will be challenging, even given the council’s track record of financial management.

“It will necessitate further savings proposals being developed and a further very rigorous review of all areas of the council’s budget, ensuring all areas of spend are linked to its key priorities and maximising the impact on them.”

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A ‘fair funding review’ is set to change the way funds are allocated from central Government to councils across the country, potentially changing the amount of money CWAC receives in 2021-22.

But a Government paper outlining how social care can be funded in the years to come is now more than two years overdue, while there is also uncertainty around the future of business rates.

CWAC’s proposed council tax hike is identical to the rate rise being lined up by Middlewich's local authority Cheshire East Council, while both police and fire chiefs are also proposing rate increases in 2020-21.

Taxpayers saw their CWAC bills rise by 4.99 per cent last April.

Budget plans for CWAC will be discussed by the council’s overview and scrutiny committee next Monday.

They will then be endorsed by cabinet next Wednesday before full council votes on whether to approve the new budget on Thursday, February 20.