South Hams councillors are to be recommended to approve a budget that sets aside £700,000 for recovery and renewal from the COVID-19 pandemic and for the climate change action plan.

The council’s executive on Thursday unanimously recommended their draft budget for 2021/22 to full council for approval next month, which includes a proposed £5 increase in council tax for Band D for their share of the overall bill.

And the budget will include an allocation of £500,000 for funding for the Recovery and Renewal Plan, with a further £200,000 funding for the Climate Change Action Plan.

Cllr Judy Pearce, leader of the council, said that it was important that the £200,000 is used for projects that both tackle climate change and help a green recovery from the pandemic.

She said: “It is important it straddles both objectives and will help the council and the district achieve the recovery and move towards a zero carbon future, and we spend it relatively quickly to get things moving.”

Lisa Buckle, the Corporate Director for Strategic Finance, in her report, said that COVID-19 has caused financial strain for all ouncils up and down the country where councils find themselves being caught in a ‘perfect storm’.

She added: “Councils have to manage both the increased costs of coping with COVID-19 and supporting vulnerable people in the community and the loss of key income streams such as ferry income, car parking income, planning income and council tax and business rates income.”

Her report said that while there was a budget gap for 2021/22 of £75,871, the Draft Finance Settlement means South Hams will receive a Lower Tier Services Grant of £82,123 for 2021/22 and this extra funding announced has enabled the council to close the budget gap and present a balanced budget position.

The proposed budged will include an increase in Council Tax for 2021/22 by £5 (Band D of £175.42 for 2021/22 – an increase of 10 pence per week or £5 per year –2.93% increase), while they will transfer £380,789 into a Covid Earmarked Reserve, to protect against future Covid-related losses in 2021/22.

Full council, when they meet on Thursday, February 11, will be asked to approve the draft budget.