The council will use over £10 million of reserves and raise tax by nearly five per cent to reach a balanced budget in the upcoming financial year as the authority faces ‘significant budget pressures’.

Westmorland and Furness Council has approved its budget for the financial year 2024/25 which includes raising council tax by 4.99 per cent as well as implementing an empty homes premium of 100 per cent after one year and 300 per cent after 10 from April.

The council approved the introduction of a 100 per cent council tax premium on second homes from April 2025 and will raise fees and charges by 6.7 per cent. The authority also voted in favour of £110.51 million in capital spending over the 2024/25 financial year.

Cabinet member for finance councillor Andrew Jarvis said at a cabinet meeting: “We are already making progress in transforming our council but this budget provides the basis for the next steps to retain and further strengthen our services, to invest in savings and service improvements, and further progress to delivering our council plan.

“Let me be clear we’re doing this in a managed and prudent way, our capacity is limited, and we cannot do everything at the same time. Rushing change could create huge risks as we’ve seen elsewhere.”

A report prepared for the cabinet on the draft budget proposals said the council had identified savings of £10.34 million for the upcoming financial year which the report says will not impact frontline services.

The authority will also use £10.64 million of reserves in the upcoming financial year which consists of £2.5m from the general reserve and £8.34 million from earmarked reserves.

Through the proposed council tax rise, the authority hopes to raise £163.66 million which results in a band D council tax fee of £1,827.26. This is an increase of £86.87 on the previous year.

A report prepared for the council adds: “Like all local authorities, the council has significant budget pressures that are not fully funded from central government, which means that efficiencies, savings, and different delivery approaches are required to balance the budget and enable investment in priority areas.

“The council has a very pressured funding envelope. Council tax income is the most sustainable and significant source of funding for the council.”

According to a report prepared for the council meeting the authority plans on spending £499.95 million before the end of the 2028/29 financial year. This includes the capital budget for 2023/24 of £75.65 million.

Before April 2029 the council proposes spending £19m of investment for prioritised maintenance of schools and £30m for other buildings as well as £100m maintenance of highways with an additional estimated £70m from the Network North funding announced recently

There is also £9m of housing revenue account (HRA) planned maintenance, £10.4m for decarbonisation projects and £24.5m for the Marina Village Phase 2 scheme plus many smaller projects.

Leader of the Conservative group councillor Hilary Carrick told the council the budget may be balanced in financial terms but the political priorities it supports are ‘definitely’ not balanced.

Cllr Carrick said: “Local government is undoubtedly well placed to help the government meet its national net zero ambitions.

“But as one of the youngest unitaries in existence should we really be fanatically obsessed with achieving net zero locally at a pace that exceeds the pace of our national government, whose own target date for the country remains 2050 to avoid placing an unacceptable financial burden on taxpayers.

“Having heard earlier during the presentation for the proposed budget that future funding is uncertain and significant savings will need to be delivered, can we really afford to spend £10 million of taxpayers money on decarbonising the council’s fleet, really. And if we can, do we need to put council tax up by the maximum amount possible.”

In response Cllr Jarvis told the council that climate change is an ‘existential crisis’ facing our country and added: “Council has to path to net zero that we can do in a way that is affordable and sustainable and we will prioritise those things that save us money.”

The council approved the budget on February 22 at the County Hall in Kendal.