Merton’s balanced Budget approved for 2024-25

· by · in Cost of living, Council finances and performance, Council Tax, Leader of the council. ·
Budget 2024-25
Merton’s 2024-25 budget was passed on 6 March

Merton’s 2024-25 budget was approved by a meeting of Full Council on 6 March, balancing the books in a time of extreme financial pressure through prudent financial management. Despite the challenging conditions, the budget still provides investment in the things that matter to residents, such as the first new affordable council houses in a generation, upgrades to our high streets, and improving our 24-hour CCTV network to keep Merton as one of the safest boroughs in London.

Local authorities all over the country – including Merton Council – are under significant financial pressure. A combination of increased costs, reduced revenue, and a sharp increase in demand for services has meant that the council is having to do more with less. The situation is made even more challenging by years of Government cuts to Merton’s funding – down by £17.1 million since 2010.

To make up for their cuts and the inflationary pressures felt by everyone, the Government have announced that they expect the council to raise Council Tax by 4.99%. Merton’s funding was calculated with the assumption that the council would go along with the tax rise, meaning even more cuts to the vital services if they didn’t.

To protect the households in Merton on the lowest incomes from the increase in Council Tax, the council is once again offering one of the most generous Council Tax Support schemes in the country. The expanded scheme will see approximately 10,000 households receive support with their Council Tax bill.

In spite of the difficult financial headwinds, and because of careful management of the council’s finances, the budget contains a raft of measures aimed at delivering on the priorities of the people of Merton. Included in the budget are plans to:

  • keep Merton as one of the safest boroughs in London by investing in our 24-hour CCTV network
  • begin work on the first new council homes in Merton in a generation
  • safeguard Adult Social Care and Children’s Services for the most vulnerable in our borough
  • breathe new life into town centres and high streets through targeted investment
  • keep Merton clean by improving waste collections and street cleaning, and cracking down on fly tipping
  • maintain and improve roads and paths so everyone can travel around Merton with ease and safety, and
  • look after and improve Merton’s much-loved parks and green spaces so they remain the envy of London.

There are also measures to build a sustainable future for generations to come – improving walking, cycling and electric vehicle infrastructure to clean up the air we breathe, and tackling climate change. To nurture a sense of civic pride so that everyone feels proud of our borough, there are investments in community groups – from older people’s lunch clubs to activity groups for adults with learning difficulties. To meet the ambition to build on our borough’s great sporting heritage, the council is upgrading local facilities, as well as funding free and low-cost opportunities for everyone to get active – many of which you can see on Merton’s brand new Activity Finder.

Councillor Ross Garrod, Leader of Merton Council, said: “Each year, we face difficult choices as we work to balance the budget, but this year has been more challenging than most. With less money coming in – not least due to the huge cuts that the Government has made to our funding – we’ve had to work hard to protect the services that the people of Merton rely on.

“I’m proud to say that we haven’t just protected these services, but our careful management of the purse strings has also meant that we can direct money towards real improvements in the borough, the effects of which will be felt for generations. New affordable council housing, modernising our town centres, and upgrading sporting facilities all around our borough are just some of the ways that this budget allows us to build a sustainable future for Merton. This is a remarkable achievement given the continued underinvestment that we see from Westminster.”

Councillor Billy Christie, Cabinet Member for Finance, said: “The Government continues to underinvest in our borough, putting at risk the vital services that so many in Merton need. Their only answer to the financial difficulties that they have imposed on all councils is to make residents pay for it by increasing Council Tax

“However, our sound management of the council’s finances has meant that, at a time when multiple local authorities are declaring bankruptcy, we are able to shield the borough’s least well off from the impact of the Council Tax rise; protect the services that mean so much to our residents from Adult Social Care, to libraries, to street cleaning; and invest in improvements to meet the priorities of local people.

“At the heart of our budget is the principle that we need to deliver good local services whilst securing the best value for money for taxpayers. That’s why we’re always looking to maximise the value of every pound we spend in Merton by attracting inward investment, making our services even more efficient, and ensuring that we get value from our contracts and suppliers – so we can always get the best deal for local people.”