FARNHAM residents could see a substantial hike in council tax this year after Waverley Borough Council warned a severe cut to its Government grant means “difficult decisions” will have to be made to balance the books.

Following a reduction of 52 per cent in the borough’s main Government grant for 2016/17, council leader Robert Knowles said Waverley may be forced to increase is share of the council tax bill for the first time since 2010 to protect local services.

Mr Knowles said: “Waverley has responded to the Government’s austerity measures over the last six years and has made more than £9 million of savings while freezing council tax. Waverley is facing an overall Revenue Support Grant reduction of £814,000 in 2016/17 on top of the very substantial reductions already made.

“I have met with the Secretary of State recently and have expressed concerns about the cuts and the need for Waverley to protect local services. I will be making further representations on behalf of Waverley before the consultation deadline. However, in light of the grant cut, I cannot see how we can avoid a council tax increase this year.”

Cutbacks to make more than £1 million of savings for the next financial year were already on the cards before the Government’s announcement just before Christmas that the Revenue Support Grant would be 22 per cent less than expected.

Included in the budget report for 2016/17 are proposals to maintain Waverley’s overall funding pot for the borough’s voluntary and charitable organisations which includes Citizens Advice, day centres and Hoppa Community Transport, a commitment to the new Farnham Memorial Hall and relocation of the Gostrey Centre, and proposals to build a new visitors’ centre at the popular site of national importance, Frensham Great Pond and Common.

Waverley’s finance portfolio holder councillor Wyatt Ramsdale said: “The reduction in Government grant for the coming year is massive. In previous years we would be much closer to balancing the budget at this time, however the 52 per cent cut by far exceeded our estimate of 30 per cent.

“We have some difficult decisions to make ahead of a final decision being taken in February. Waverley’s primary aim in setting its budget is to protect valued frontline services while continuing to provide value for the community in every pound that it spends.”

Waverley’s share of the council tax bill accounts for around 10p in every pound paid in council tax, with 74p going to Surrey County Council, 13p to Surrey Police and 3p to town and parish councils.

Although Waverley has frozen its share for the past six years - incentivised by a Government relief grant - Surrey Police, the county council and Farnham Town Council have all increased council tax in recent years.

Surrey County Council has warned it may have to increase its share of council tax by as much as four per cent to plug gaps in funding for adult social care, while Farnham Town Council has discussed increasing its precept by up to five per cent.

Surrey’s Police and Crime Commissioner, Kevin Hurley, is also consulting residents on whether they are willing to pay more towards policing through their council tax.

As part of his responsibility for setting the budget for Surrey Police, the commissioner annually consults residents on the amount they would be prepared to pay towards policing through their council tax. This year he is asking whether residents would be willing to pay 1.99 per cent more per year – around £4.30 for a Band D property – to support Surrey Police.

Mr Hurley said: “Although the chancellor has protected policing in cash terms, there will be no increases in our Government grant to account for inflation. As a result, we will still have to make savings in the years to come.

“Additionally, emerging crimes such as child sexual exploitation, domestic abuse and cybercrime mean that more of our resources need to be used in these very serious areas, leading to fewer officers out on the beat.

“We live in a beautiful and safe county, and I want to do my best to keep it that way. This small increase would allow Surrey Police to protect 45 members of staff from redundancy, helping us to answer the phones faster, and ensure that the police are always there when you need them. I encourage the Surrey public to have their say.”

• The consultation is open for another week. To respond visit the website www.surrey-pcc.gov.uk/counciltax/.