Tewkesbury Borough Council will consider its budget for the next year at its meeting on February 27.

The council's net budget totals £12.46m, with a proposed £5.43m from council tax. The overall budget is a 10.29% increase on £11.3m for 2023/24.

The Government's Funding Guarantee has been increased to 4% for 2024/25. For Tewkesbury, that means an additional £424,000 of support.

The Government has told councils they can increase council tax by £5 (Band D) or 2.99%, whichever is higher.

If the budget is approved, Tewkesbury residents in Band D can expect to see council tax for borough council services rise by £5 per year - a total of £144.36. This would keep Tewkesbury's council tax at around the eighth lowest district tax in England.

The increase in council tax will generate approximately £188,000 additional funding for the council.

In setting the budget for 2024/25, the council proposes to continue to provide the same level of service as in previous years and, in many areas, looks to provide an enhanced service, whilst also investing to meet the demands of the growing population of the borough and the emerging priorities of its new Council Plan.

This is despite an estimated £6.1m shortfall in funding between 2024/25 and 2028/29.

Nationally, the funding allocated for local government sees an increase of 7.5% or £4.5bn for 2024/25. Tewkesbury's funding is lower than national average at 5.76%, but is a significant increase compared to previous years and is in line with other district councils.

But the council warned that 5.76% is well below the levels of inflation which have impacted its costs over the last 12 months and will not alone cover the increasing cost of providing services.

Despite the financial pressures, council officers are recommending £472,976 of investment in ongoing growth of council services for 2024/25. This includes nearly £187,000 of continued investment in the council's digital transformation and £50,000 in youth engagement.

Growth bids were requested from services, amounting to requests for an additional £1.6m. This level of additional cost was not affordable for the council, so senior officers reviewed all the bids received and prioritised them against the available funding.

In addition, the council expects it will need to increase salaries by 4% from April 1, 2024, at an estimated additional cost of £487,000 per year.

All areas of the council's work are expected to see an increase in funding, with the exception of planning and finance. Proposals are for a 24.32% (£230,663) reduction in funding for planning and an 18.27% (£321651) cut for finance.

In proposing the budget, the council's chief financial officer said: "It has been necessary to increase council tax by £5 in order to meet the financial pressures facing the council. Whilst lower council tax increases were considered, these did not provide the income required to fund the demand pressures within services."