Copeland Borough Council will consider its proposed budget next week, including a proposed rise in council tax in light of the pressures caused by the Covid-19 pandemic.

The council will meet virtually next Tuesday to consider the budget proposed by Conservative mayor Mike Starkie. It will first be considered by the council’s executive tomorrow.

Among the recommendations for adoption is an increase in council tax for Copeland residents by 1.95 per cent for the coming 2021 and 2022 financial year.

This equates to an annual rise of £3.19 for a Band B property, from £163.56 to £166.75, or £4.10 for a Band D property, from £210.29 to £214.39.

The proposed budget is described as a “financial reflection of the corporate strategy that is set in the context of the challenges presented by the Covid-19 pandemic and wider pressures”.

A report prepared for Copeland Council’s executive meeting on Thursday by director of financial resources Steven Brown outlines the varied pressures on council finances brought about as a result of the Covid-19 pandemic, which have formed the context within which this draft budget has been produced.

One issue is that for the first time since 2013, the council’s tax base has reduced, resulting in a lower total amount of council tax that can be collected by the authority. Council tax is the authority’s main source of funding.

Mr Brown explained that this reduction was due, “in large part, to the increase in the number of residents requiring local council tax support.

“The increase in council tax support is due to the recession brought about from the Covid-19 pandemic that has resulted in financial hardship for many households.”

Copeland Council had “not seen a significant decline in business rates”, Mr Brown explained, adding that financial support provided in the shape of “various Covid-19 related reliefs and small business rate reliefs” had been provided.

However, he noted that many businesses, particularly on the high street, were managing significant financial pressures with a possible impact on the council’s business rate income in future years.

Council finances are described as significantly affected since the start of the pandemic. This is expected to continue through the next financial year “and probably beyond, depending on the time taken for the economy to recover”.