A clash is due to commence over Reading council's budget this year as Labour has been accused of imposing austerity measures.
The Labour administration at Reading Borough Council has devised a proposed budget for the coming financial year running from April 2025 to April 2026.
The administration has argued that is facing rising demand for its services and increased costs to services.
Despite these challenges, they are proposing £5.599 million extra for children’s services, £5.094 million extra for adult social care services, and £884,000 for homelessness prevention.
However, in order to fund these investments, the Labour administration is proposing a 4.99 per cent increase in council tax, the maximum amount without calling a referendum.
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Justifying this, Liz Terry (Labour, Coley), the leader of the council, said: “In Reading, the combined cost of caring for vulnerable children, young people and adults now accounts for more than 70 per cent of our total expenditure, which leaves very little room to prioritise other areas, and indeed to pay for the universal council services most of us see and use.
“There was some welcome news for Reading in the Government’s recent finance settlement with additional funding made available through a variety of grants, and we very much look forward to being able to plan for more than one year at a time with the introduction of multi-year settlements which come into effect next year.
“In the short term however, there remains considerable pressure on our budget.
“You do not need to look too far from home to see local councils in acute financial distress, with a request for a council tax rise of up to 25 per cent refused by government only last week, and others requesting exceptional financial assistance. Many years of prudent management of the council’s budget in Reading means we are not in that position, but the one-off use of reserves is a strong indicator that the position is not sustainable in the long term.”
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The administration has been accused by the Greens of making cuts to funding to cultural initiatives and support to charities to make savings.
Councillor Rob White (Green, Park) the leader of the opposition said: "In the current year it is deeply worrying that the council is heading for a £10 million overspend. The council needs to get a grip on its finances so it can continue to provide the services on which we all, especially the vulnerable, depend.
"Because of the underfunding of councils by the Conservatives and now Labour council tax is going up again by an eye watering 4.99 per cent, as well as increases for many other council charges. The council is also making cuts to services. It is classic pay more get less.
READ MORE: Clash over Reading council budget as pressure on services mount
"Pensioners are being squeezed by cuts to winter fuel payments, families are being squeezed by the two child benefit cap and everyone is being squeezed with energy and water bills going up. What we desperately need is support from the Labour government and council that helps people.
"This budget keeps the lights on but doesn't do much beyond business as usual for all of those people struggling in poverty and it doesn't do much for the environment. As we feared we have gone from Conservative austerity straight into Labour austerity."
The budget is due to be discussed at the council's policy committee meeting on Monday, February 17.
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