YEARLY tax increases of almost four per cent are now being planned until 2020, it has been revealed.

Cumbria County Council is proposing to raise council tax by 3.99 per cent for the next three financial years, following on from an identical increase experienced by residents during the current 2016/17 year.

Of that, 1.99 per cent forms a general increase on the council’s income. The remaining two per cent will specifically support adult social care services, as recommended by the government to support the country’s ageing population.

Every one per cent increase in council tax generates £2m of income needed to prevent service cuts in the face of government reductions to the council’s budget.

The council has been working to find £16.5m in savings during 2017/18, and says it has managed to identify these by reorganising the way it works and therefore avoiding any service cuts.

Further savings of £32m still need to be made over the two years following that, however, with decisions on how to do so to be taken by the new council elected in May 2017.

The council is also uncertain as to what budget it will be given beyond the next financial year, until the government’s autumn statement in November.

Councillor Stewart Young, Labour leader of Cumbria County Council, said: “Since austerity began in 2011, we have achieved savings of £198m and we predict that by 2020 this will have increased to £246m.

"This is the scale of what we face. The November statement will be the first indication of the government’s direction of travel. Our situation could be worse, or it could be better, we simply won’t know until we receive our settlement in December.

“What we do know is that these are difficult financial times for us and for the public. The last few years have been the most challenging that we have ever known and that looks set to continue."

The county council’s planned tax charges do not take into account precepts to be added by district and parish councils or the police force, which contribute to total tax costs.

The proposed changes have gone out to public consultation, with Cumbria’s residents given until January 20 to respond and the council’s cabinet set to consider the budget proposal in February.

Cllr Young warned that, without the extra income provided by the raised taxes, service cuts would be needed to make essential savings. Visit cumbria.gov.uk/budgetconsultation to take part in the consultation