No council cuts despite lower than expected returns at Forest Heath
A lower than expected return on a council’s capital will not lead to cuts in services or a rise in tax.
Forest Heath District Council was expecting to earn £90,500 interest on money in the bank but was £30,000 off, bringing in £57,852, according to a mid-year report.
The council was predicting its bank balance to rise by 0.75 per cent, but lower than forecast base rates set by the Bank of England meant their rate of return was 0.58 per cent.
Cllr James Waters, leader of Forest Heath, said: “While we are on target to achieve a balanced budget, this illustrated the importance of the council investing in other things such as the solar farm and the business units at Sam Alper Court in Newmarket, both of which have delivered returns slightly better than expected, while our investments in the factory site rented to Omar Park Homes are delivering a rate of return of 10 per cent and above.
“In terms of the overall budget setting, there are greater pressures including changes to funding for both Forest Heath and St Edmundsbury and the budgets will be considered in the next few months.”