MEMBERS of Barnard Castle Town Council are facing a budgeting conundrum – how to balance the books next year without hiking up the precept in the face of rising costs, falling income and higher wage bills.
In January, councillors raised the amount of money levied from town taxpayers from £183,173 to £204,574 – a 10.4 per cent rise.
They are now getting ready to set the precept for next year but clerk Martin Clark has warned of difficulties.
He told members of the resources committee: “Non-pay inflation in the economy is running at about over nine per cent with the Bank of England predicting it to reach 13 per cent by the beginning of 2023 and remain at an elevated level for some time before falling back.
“This makes this budget setting the hardest that this and other councils have had to draw up. Members should consider applying a minimum ten per cent inflation factor to goods and services headings during the 2023/24 budget preparation.”
Mr Clark said council staff are expected to have a higher pay rise than in previous years. In 2021/22, wages rose by 1.75 per cent but the council is planning for a four per cent rise as a minimum.
In previous years, the town council’s offices were let out to Citizens Advice and the Association of Teesdale Day Clubs. Those earnings helped keep the precept down.
However, to encourage the service to return to Barnard Castle, town councillors agreed to give the Citizens Advice free use of the offices in the new year. A similar deal was taken up by the day clubs.
Mr Clark said: “The loss of Woodleigh rental income is more likely to have a greater effect on the 2023/24 budget setting process as this has been used to offset increases in the precept request level and reduce the local tax burden on residents.”
He said it was unlikely that town and parish councils would be limited in how much they can increase council tax next year.
Councillors have been asked what projects they would like the council to take on so they can be considered in the budget, which will be set in January.
Members were told that any project put forward should be “more than just an idea and must include some background detail so an informed decision can be made.” Councillors have until October 7 to submit suggestions.
