Budget consultation 2021/2022

We are considering a small increase in our share of the council tax and want to hear your views before making our final decisions on this year's budget.

The Council’s Budget Consultation for 2021/2022 will take place between 19 January 2021 and 20 February 2021, you can share your feedback with the Interim Chief Finance Officer at Fin.Man@eden.gov.uk

What have we decided?

The Executive approved the outline budget proposals at the Executive meeting on 19 January 2021, and they will seek to finalise these, taking account of consultation responses on 16 February 2021.

The Council meeting on 25 February 2021 will consider the Budget and set the Council Tax for Eden District, the County Council and the Police.

How is my total Council Tax bill decided?

The outline budget proposals include an increase in the Council Tax of £5 for a Band D property.

We raise £4.06m in Council Tax, which is only 10.3% of the overall Council Tax Bill that you will pay. For 2020/2021 for a Band D property the equivalent of £3.76 per week with the increase costing less than an additional 10p per week.

Council tax payment increases for each band
Council tax band Valuations Annual cost
2020/2021
Proposed cost
2021/2022
Proposed increase
pence per week
Band A Under £40,001 £130.50 £133.83 6p
Band B £40,001-£52,000 £152.25 £156.14 7p
Band C £52,001-£68,000 £174.00 £178.44 9p
Band D £68,001-£88,000 £195.75 £200.75 10p
Band E £88,001-£120,000 £239.25 £245.36 12p
Band F £120,001-£160,000 £282.75 £289.97 14p
Band G £160,001-£320,000 £326.25 £334.58 16p
Band H Over £320,000 £391.50 £401.50 19p

We collect the remainder of your Council Tax bill on behalf of Cumbria County Council, Cumbria Police and Crime Commissioner and Parish Councils.

Authorities' share of council tax
Authority Amount Percentage
Cumbria County Council 1,440.56 75.7%
Cumbria Police 265.59 14.0%
Eden District Council 195.75 10.3%
Total 1,901.90 100.0%

 Percentage of council tax we collect for the County Council and the Police and Crime Commissioner

*In rural areas an additional parish precept is added. This is variable and is set by the Parish Council.

The Council's remaining funding comes from Government including Business Rates, New Homes Bonus and Business Rates. The Government is encouraging local authorities to become more self-sufficient. The proportion of Government Funding 48% vs Council Tax 52% is shown below:

Pyechart showing government funding 48% and council tax revenue of 52%

The Council is working hard to achieve a balanced budget for 2021/2022 and sustainable Medium Term Financial position.  Funding for 2021/2022 is £9.2m or 92% with a funding gap of £803K or 8% shown below:

Pyechart showing funding gap of 8%

The Council has set out its plans in its approved Corporate Plan 2019 to 2023, which sets out the vision and the priorities for Eden over the next 4 years.

The success of the Plan will rely heavily on the Council’s ability to deliver the required savings to balance the budget and this will be delivered through transformational change to the organisation.