Horsham District Council could face multi-million pound budget gap 'if action isn't taken'

During a meeting of the cabinet on Thursday (September 29), Tony Hogben, cabinet member for finance, gave an update on this year’s financial position and a snapshot of what the 2023/24 budget could contain.

That snapshot included a council tax rise of £5, a £5 increase in the cost of the garden waste collection service – taking it to £49 for the year – and a six per cent increase in fees and charges.

As for this year’s budget, the council had forecast a £250,000 surplus but is now facing a £272,000 deficit, largely due to the national pay award for staff being far higher than expected.

Mr Hogben said: “There is no further clarity on government future funding and how the future of business rates, fair funding or levelling up may affect us.

“There is no certainty on the content or length of the [funding] settlement we may get in December – although we now hope for this to be a two-year rather than a single year, which would help us plan for the future a little better.”

A report to the meeting said that rising salary costs, along with new services such as a food waste collection expected to start in 2024, were contributing to a predicted £3.4m gap in the budget over the next few years ‘if actions are not taken’.

Mr Hogben said more emphasis would be placed on increasing the council’s income.