COUNCILLORS in the Forest are concerned about the impact that inflation is likely to have on the costs of running council services.

There are fears that inflation will leave the council in a position where they have to choose between driving council tax, which would impact the community, or not, which would leave it struggling to cover costs.

District chiefs discussed the issue at a recent audit committee meeting.

The rate of inflation in the UK hit 9.1 per cent in the 12 months to May, according to the Office for National Statistics.

Fuel and energy prices are the biggest drivers of inflation, but the ONS said food costs had pushed it up further.

Councillor Brian Robinson (Ind, Longhope and Huntley) said inflation is a major risk for the council’s finances.

“There’s two aspects to how that would impact us. One is how inflation impacts the community. If we drive up council tax, that will be an additional cost but then if we don’t drive up council tax then how do we survive?

“But also, public sector staff have worked for very many years on relatively constrained wage increases so it’s perhaps an illusion to think that will just carry on and staff will think that’s great.

“So we may well have staff working to rule which disrupts service provision which will increase costs.

“Also some of our contracts such as with waste collection.

“There are inflation provisions within the contracts so without anything else happening we will find we are paying more because of that.”

The council’s section 151 officer said he totally agreed that it was a major risk.

He said: “You are right. Inflation, especially within the contracts we have there will increase next year.”