South Cambridgeshire District Council with nearly 60,000 households and 8,000 businesses has one of the lowest council tax rates in England and Wales and for 2019/20 it will be £145.31 for a band D property.

With such a low council tax base, Council Tax and Retained Business Rates account for about three quarters of the income needed to support the General Fund budget of £21m, so the Council has to look for income from other sources.  Moreover, it is expected that the Government’s Fair Funding Review will impact negatively on future income from Retained Business Rates and New Homes Bonus, more than off-setting increases in Council Tax income.

So the Council’s Medium Term Financial Strategy looks to generate a quarter of Council income from commercial investments within five years.

Before the change of political control last May the Council was cautious in its investments, relying mainly on the interest from loans to its Housing Company which lets property at open market rents.

The new Liberal Democrat administration recognizing the risks from this has embarked upon diversifying its portfolio, aligned with the Council’s new Business Plan which puts economic development, homes that are affordable and social capital at its heart – including the District being carbon neutral by 2050.

The Council has started to talk to potential private and public sector partners in providing space for start-up businesses, which is in short supply in the Greater Cambridge Region, green energy, homes that are energy efficient and affordable to live in, including ones for social rent, and social capital such as community facilities.

The 2019/20 General Fund budget lays the foundation for this five year journey by not only delivering funds for investment but also for employing people with the right experience and achievements to make it sustainable.