Press Release

Dartmouth Town Council (DTC) has unveiled its proposed budget for the 2025-2026 financial year of £1,214.307, which includes a necessary increase in the precept to address rising financial pressures. The precept will be set at £753,203, an increase of £25.08 (or 11.77%) for a Band D property, bringing the charge to £222.49.

This decision comes after two years of freezing the precept post pandemic lockdown to support the community during difficult times. The report highlights the ongoing challenges the Council faces, including rising inflation, increased staffing costs, and a decline in income from several key sources. Despite these pressures, the Council is committed to maintaining vital community assets and infrastructure that benefit the local area.

Strategic Budgeting for Long-Term Investments
Dartmouth Town Council is also prioritising strategic spending to ensure the future resilience of key infrastructure. The proposed budget includes allocations to earmarked reserves (EMR) to fund major renovation projects:

• Royal Avenue Gardens Toilets – Preparations for a significant refurbishment, with or without a commercial unit.
• Butterwalk Restoration – Planning for essential renovations to preserve this historic landmark.
• Coronation Park Playground – Starting to budget for a much-needed upgrade to improve facilities for local families.

These investments reflect the Council’s commitment to maintaining and enhancing vital community assets, ensuring they meet the needs of Dartmouth’s residents and visitors for years to come.

Key Factors Driving the Budget Deficit

Dartmouth Town Council froze the precept in 2021 and 2022 to ease the financial burden on residents. However, rising costs in several areas have led to a projected budget deficit for 2025-2026:

• Inflation: Ongoing increases in the cost of goods and services have significantly impacted DTC’s operational expenses.
• Staffing Costs: Nationally agreed pay increases and rising National Insurance contributions have contributed to higher payroll costs.
• Operational Expenses: Increases in material costs and insurance premiums have further strained the budget.

In addition to increased expenditure, DTC has seen a decline in income from several revenue streams, including:

• Lower Footfall and Revenue from Royal Avenue Gardens Toilets: Footfall at the RAG toilets has dropped significantly, from 206,000 in 2021 to 155,000 in 2024. DTC recently became aware that under legislation, turnstiles cannot be used in public toilets. Their removal means all revenue from the RAG toilets will cease in 2025 unless an alternative solution is implemented.
• Lower Boatfloat Occupancy: Reduced demand, potentially due to rising costs for neighbouring town residents and increased second-home ownership, has led to fewer boats moored.

Proactive Measures to Mitigate Financial Pressure

To address the budget deficit and maintain financial sustainability, DTC has outlined several cost-saving initiatives and revenue-generating activities:

Cost-Saving Measures:

• Sale of Ivy Lane Building – Eliminating annual costs of £12,000.
• Reduction in Grant Funding – Reducing the pool from £50,000 to £20,000, and reducing the maximum grant size from £5,000 to £2,000.
• Sponsorship Reduction – Lowering sponsorship funds from £7,500 to £5,000.
• Castle Estate Management – Exploring options to transfer management to reduce maintenance costs.
• Composting Project – Investigating a solution to save over £9,000 annually on gardening waste.
• Staffing Review – Reviewing staffing levels to identify potential savings.

Revenue-Generating Activities:

• Maximising Rental Income – A proactive asset management approach has increased rental income by £126,000 over the past four years.
• Commercial Development – Exploring the creation of a commercial unit at the RAG toilet block, pending public consultation.
• Ensuring all tenants pay the annual market rate for use of Council property.
• Tennis Courts Investment – Investing in resurfacing with funding from a new gated access system.
• Car Park Fees – Considering charges for the Old Market car park to boost income.
• Boatfloat Pricing Review – Adjusting pricing structures to attract more boat storage users.
• Second Home Council Tax – Working with South Hams District Council to introduce a 200% second home council tax, expected to generate £79,000 starting in April 2025.

Quote from Mayor:

“While we face significant financial challenges, Dartmouth Town Council is committed to ensuring the long-term sustainability of our services. The proposed precept increase will allow us to continue supporting our community and investing in future improvements,” said Cllr David Wells, Mayor of Dartmouth.

Looking Forward

Dartmouth Town Council is committed to striking a balance between financial sustainability and continued high-quality services. While the proposed precept increase is necessary to address rising costs and ensure the future of essential services, the Council is dedicated to being transparent and accountable in its financial decision-making.

DTC believes that by taking proactive steps to reduce costs and increase income, the community will see the benefits in the form of sustained and improved services for all residents. Through these efforts, Dartmouth Town Council aims to ensure a resilient future for the town and its people.

For more information, please contact:

Charlie Pritchard-Williams
Town Clerk
Dartmouth Town Council
clerk@dartmouthtowncouncil.gov.uk
01803 832281