TAX and garden waste costs will increase for Cotswold residents next year as the district council faces a £3m hole in its budget in the coming years.

Cotswold District Council leaders says it needs to make these tough decisions to avoid bankruptcy as a result of reduced government funding and increased costs.

Unless significant changes are made to reduce spending and increase income, the authority will not be able to balance its budget in 2027, it said.

The council has seen its core Government funding reduced in real terms by 50 per cent in the last decade and the recent rise in inflation has pushed up the cost of delivering council services.

And the much-delayed review of local government funding suggests a further £3 million reduction in funding by 2027 which would cut the council’s budget by around 25 per cent.

Council leaders say they must make decisions now to prepare for it and avoid bankruptcy.

In its draft budget for 2023/24, the council is proposing to raise council tax by £5 a year for a Band D Property and increase car parking charges.

Together, they could raise £685,000 to fund vital services. It’s also proposing to increase the garden waste charge so that the service continues to be paid for by the people who use it and not subsidised by council taxpayers.

The council is also doing more to find further savings including measures to make their operations more efficient.

Deputy leader and finance cabinet member Mike Evemy (LD, Siddington and Cerney Rural) says councillors of all political colours find the current way local government is funded “mad”.

“This is mad. How do we as councils try to run an organisation on a year by year basis? There’s recognition across the Local Government Association that we need sustainable funding settlements.

“It makes it harder to make these decisions but we have to make them. The Government has failed to fund local councils properly and as a result, we’re now facing an unprecedented financial challenge.”

"I want to be upfront with residents that if we don’t take tough decisions over the next couple of years, we risk ending up like other councils - declaring effective bankruptcy and then seeing big tax rises, huge hikes in charges and services shutdown.

“By making difficult decisions in next year’s budget, it will help us avoid making much tougher decisions in future and facing the harsh changes we have seen at councils that have lost control of their finances.

"We will be consulting on our proposed budget for 2024/25 from Friday 3 November and will let residents, businesses and community organisations know how they can provide feedback to us on our plans.”