Millions of pounds of further cuts and savings could be made as Norfolk County Council battles to balance the books amid “significant uncertainty” surrounding its finances.

The public is also to be consulted about council tax increases as part of budget proposals, but the council’s cabinet says it wants to avoid a rise of over three per cent and has asked officers to find £5m of extra savings.

Andrew Jamieson, cabinet member for finance, said: “Although we face major financial pressures, our residents face rising living costs – and so we should explore every option to avoid raising council tax by more than absolutely necessary.”

Leaders at the Conservative-controlled council have previously said they needed to find just over £39m of savings next year.

In July the council cabinet outlined £17.7m cuts from adult social services and £8.7m from children's services among the savings to plug the funding gap.

But “highly challenging circumstances” continue to surround the county council’s latest budget proposals, requiring further savings to be found, it has been revealed.

Eastern Daily Press: Andrew Jamieson, Norfolk County Council cabinet member for financeAndrew Jamieson, Norfolk County Council cabinet member for finance (Image: Norfolk County Council)

A report to be discussed by the cabinet on November 8 recommends that the council’s executive directors find “further recurrent savings of £5m” and undertake a full review of how the council operates to deliver its future services.

Mr Jamieson said proposals for extra savings may come forward in the next couple of months but he remained hopeful that the specific spending review from the Department for Levelling Up, Housing and Communities may avoid larger cuts.

“It may well be that the settlement is sufficiently robust that I can say we don’t have to make these £5m of savings,” he said.

“But I want to put people on notice that if it gets to the most pessimistic end of my forecast of what we are likely to receive, that's what we will have to do.”

Eastern Daily Press: Chancellor Rishi Sunak delivered the budget on October 28Chancellor Rishi Sunak delivered the budget on October 28 (Image: PA Wire/PA Images)

The council had put the publication of its budget proposals on hold, in the hope that chancellor Rishi Sunak’s comprehensive spending review last week would provide more long-term certainty for local authorities.

But it said extra belt tightening was now needed to cope with additional financial pressures including no new Covid funding and most of the additional government funding for adult social care reforms being focussed on the NHS.

Meanwhile some of the announcements made in the chancellor’s spending review are likely to add to the pressures on Norfolk’s beleaguered coffers.

The National Insurance increase and rise in the National Living Wage to £9.50 an hour will add extra costs, particularly to care services.

There could also be a possible knock-on impact of the ending of the public sector pay freeze on council pay demands.

In addition, the government’s fair funding review and reforms to business rates were not mentioned in the budget and may be postponed again.

Eastern Daily Press: Labour's Steve MorphewLabour's Steve Morphew (Image: Archant)

The budget report states that, until the financial settlement for councils is confirmed in December, there is “considerable uncertainty over the council’s funding”.

Steve Morphew, leader of the Labour group at County Hall, said: “They are in a wretched position because the government is still not giving a clear steer on how much money there is, but they are not being honest with Norfolk about the size of the problem.

“It means yet more deep cuts in services whether or not they decide to hike council tax.

“Most likely we’ll finish up with both a big hike and cuts in services for yet another year which is unfair on people feeling the pinch significantly.”

Eastern Daily Press: Brian Watkins, Liberal Democrat county councillor for Eaton. Pic: Liberal Democrats.Brian Watkins, Liberal Democrat county councillor for Eaton. Pic: Liberal Democrats. (Image: Liberal Democrats)

Brian Watkins, Liberal Democrat group leader, said: “Despite having the financial costs of Covid in Norfolk covered by the government, these proposals highlight years of poor management by Norfolk Conservatives.

“For the sixth year running council tax is due to increase with threats of more rises in future years.

“Residents are being taxed more but are getting less. This adds to the rising cost of living with a hike in council tax on top of the rising cost of energy bills, fuel and food.”