An increase in council tax has been proposed by St Albans City and District Council, as a budget gap of £2.3 million is announced.

By law, the council is required to produce a budget with spending fully matched by income.

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However, due to the current economic climate, a budget gap of £2.3 million is present for 2023/24.

The council's new budget includes a proposed 2.99 per cent increase in council tax.

Social housing rents would also increase by seven per cent.

The new budget and council plan will be go before a meeting of the Full Council on February 22.

St Albans City and District Council's lead councillor for finance, Cllr Paul De Kort, said: "Producing a balanced budget this year has involved taking very difficult decisions.

"We have experienced a dramatic rise in the inflation rate to over 10 per cent and energy bills, which are key to our leisure provision, have increased much more than that.

"Interest rates also rose sharply in the autumn, more than doubling the rate available for any planned future borrowing.

                                                                                                                                

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"All of this has happened while the cost of living crisis experienced by residents has increased demand for many of our services.

"Despite inflation driving up the cost of delivery of our services, the Government has curtailed our ability to respond by capping District Councils’ tax rises to three per cent, leaving a huge drop of eight per cent in real terms spending power.

"As a result of these external pressures, we have proposed increasing the cost of some services such as planning fees and car parking charges.

"We are also proposing savings in our service delivery whilst still maintaining our statutory obligations and prioritising the most financially vulnerable in our community.

"Despite the rush to complete a sound budget, after the central Government settlement was announced in late December, over the past three weeks we have introduced and discussed the proposed changes to provide transparency and allow revision.

"Some community groups highlighted areas of particular concern and we have been able to respond and make some adjustments where pinch points were raised."

The council's leader, Cllr Chris White, added: "The council’s key priorities, besides our core services for residents, are to continue our work to combat the climate emergency, to deliver more social housing, to support the local economy, to enhance the District’s cultural offer, and to promote equality, inclusion, and fairness.

"These, together with our desire to help local people get through the cost-of-living crisis, are our areas of focus over the next five years."