'No cuts' pledge as Torbay council tax rise is planned

Consultation launched on new budget proposals

Households in Torbay are likely to see their council tax bills rise by 4.75 per cent in 2025.

The exact figure is still out for consultation, but Torbay Council intends to set the increase below the anticipated government cap of 4.99 per cent. Two per cent will go specifically to adult social care.

It means an increase of £106 on the current annual charge for an average Band D property of £2,233.

Council leader David Thomas (Con, Preston) said the council’s ‘firm grip’ on its finances meant it could make ends meet without cutting any services.

But Cllr Thomas said the government could yet announce changes to the way the tax is charged.

“So many pieces of the jigsaw are still in the box,” he said. “We don’t know what the picture looks like yet.”

Local authorities up and down the country are talking of being forced by financial constraints to declare a Section 114 alert, which in effect means bankruptcy.

But Cllr Thomas said Torbay was ‘nowhere near that’, having gone through its own issues a decade ago when the Local Government Association questioned the council’s financial viability.

“We took some of those really hard decisions in 2015,” said Cllr Thomas. “It means we have always been ahead of the curve nationally.”

Council chief executive Anne-Marie Bond added: “As a small unitary authority we were exposed to austerity earlier in the process than many other councils. We were making a range of tough decisions when larger councils were safeguarded from them.

“Larger authorities are now being exposed to these things.”

Some years ago the council borrowed more than £200million from the government to buy properties outside the bay including a cinema in Somerset and a pasty factory in Cornwall.

Critics accused the council of ‘playing Monopoly’ with council tax payers’ money, but income from the properties will contribute a crucial £4million towards next year’s budget.

Mr Thomas said the council would also have to look at exploiting assets such as Cockington Court and Torre Abbey. Cockington has traditionally been heavily subsidised, and the council wants to look at ways of ’doing better’ there.

Torre Abbey’s potential as a venue for weddings and major events will also be explored.

Council tax and business rates between them bring in more than £138million, accounting for almost all of the £146.9million the council has to spend. Estimates for next year predict spending of £147.3million, with more than £114million of that going on services to vulnerable adults and children.

The council is confident it can close the £400,000 gap between income and spending without making any cuts to services, although fees and charges for things such as parking will have to rise by 3.5 per cent in the spring.

Torbay’s plans include increasing the budget for children’s services by £1million to meet rising demand and the escalating cost of placements.

The government has already pledged to tackle ‘profiteering’ by unscrupulous private companies.

The council is looking at a new system aimed at giving more young people the support they need in Torbay rather than sending them away on costly placements.

Cllr Thomas went on: “The council spends 80 per cent of its money on services for children and adults, but apart from that most people want to talk about the place they live in.”

The council’s Operation Brighter Bay will continue with a further investment of £200,000 a year on top of the £300,000 already committed. The aim is to increase grass cutting, weeding, road marking, town centre cleaning and pothole repairs across Torquay, Paignton and Brixham. 

A team of lengthsmen will be created to do the work.

There will also be £200,000 for Operation Town Centres, which also goes on top of £300,000 already earmarked. The money will be spent on tackling anti-social behaviour by enhancing CCTV coverage and employing a new town centres manager to cover the three towns.

The council’s repairs and maintenance budget will get an extra £400,000.

Huge capital projects are also expected to start in the coming year, including the new flood defences and redevelopment of Paignton and Preston seafronts; the continuing restoration of Oldway; new homes at St Kildas in Brixham and the project to create new homes from derelict hotels.

The budget proposals can be seen at  www.torbay.gov.uk/budget-202526. The consultation runs from now until 12 January and is at www.torbay.gov.uk/consultations