A NEW budget has been agreed by Wiltshire Council that will see a 4.99 per cent increase in taxes to pay for a cut in funding from the government.

Members agreed on Tuesday to invest £131.5m in capital projects focused on the local economy, building more homes, health and wellbeing centres and community hubs and road improvements.

There will also be an additional £150,000 allocated to area boards to target local schemes.

To cover the spending, the council agreed to raise council tax by 1.99 per cent and the Social Care Levy by three per cent.

The tax rise has been introduced to counter the reduction in Government Settlement Funding Allocation to Wiltshire Council from 17.6 per cent from £86.71m to £72.31m.

Despite these funding changes there is a projected shortfall in next year’s budget and savings of £13.331 million have been found in order to balance the books.

Baroness Scott of Bybrook, OBE, Leader of Wiltshire Council said in a speech at full council that the business plan set four years ago to protect “those most vulnerable”.

She said: “We have faced challenges as a result of the reduction in funding from central government and the increasing demand for some of our key front line services; particularly adult care and children’s safeguarding and waste collection and disposal.

“We have learnt to drive an environment that encourages innovation and change as the norm, so that we can overcome these challenges and, wherever possible, maintain the services that really matter and make the difference that’s needed.

“We place people at the heart of all we do and together we take action to do what’s right for Wiltshire with the resources we have.

“Whilst there will be more challenges ahead – I know that this council is both well-equipped and ready to meet those challenges. And, to keep its focus on what really matters – the people that we serve.”