A COUNCIL has been told its current spending plan is “unsustainable” as council tax is set to rise.

Maldon District Council has approved its share of council tax and fees and charges for 2022/23.

The average Band D property in the district will see an increase of £5 a year, or just 9.6p per week, in the district council’s share of bills.

Overall bills also include charges by Essex County Council, the Essex police, fire and crime commissioner and town or parish councils.

The pressures of Covid and inflation means the use of general fund reserves is still required for the district council.

READ MORE: Here is how much council tax is set to increase for Maldon district

To deliver this budget a substantial draw down of reserves will be necessary.

It means that a budget gap is set to increase from £112,000 to £1.5million by 2024/25 leading to reserves dipping from £5.6million to £2.3million.

That is below the recommended minimum level of reserves, councillors heard at full council last week.

A report in front of councillors said: “It must be emphasised that the current medium term financial strategy is unsustainable.

“Therefore, actions will be required to address the budget gaps.”

On what actions may be taken, district council leader Penny Channer said: “The council will be reviewing corporate contracts, including waste and leisure, and will continue to identify where we can benefit from shared services and achieving more through our partnership working.

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“Budgets need to be sustainable. It is not just about balancing budgets – it is important that use of reserves is not increasing year on year.

“We need to look ahead, prepare for additional pressures and continue to find ways to generate income from commercial activities.”

Former council leader Adrian Fluker urged the council to act now to stop reserves running out.

He proposed a full budget review be carried out by a cross chamber committee working group, with a report back to the council in the spring.

He told councillors: “A financially weak council will not be in a strong position to make its case for the retention of assets when the inevitable mergers of local authorities take place.

"If we run out of reserves, we may have to merge prematurely which would mean place shaping would no longer be exclusively in the hands of local people and planning issues including the allocation of strategic sites would be determined by others from outside of the district.

"During the taper down, to that position we will need to reduce overheads, cut services, and cut jobs.

"I recognise the work of the finance member working group but believe given the council's fiscal position the group should be expanded to include additional members who do not sit on strategy resources committee."