Allerdale Borough Council is facing a predicted £2.4 million shortfall of funding over the next three years.
It says the “unprecedented year” has seen the coronavirus pandemic increase demand on its services and impact on its income.
It is now launching a budget consultation for the next financial year and wants people to have their say.
It also includes a proposal to increase its portion of the council tax.
Less than 10 per cent of the average band D council tax bill, or around £174 a year, goes towards services provided by the council. However, it accounts for 28 per cent of the council’s income.
The council is proposing an annual increase of £5 on its portion of the council tax bill for a band D property which would mean a weekly increase of about 10p.
A band A property would a £3.33 increase, equivalent to 6p a week.
A statement from the authority said: “Whilst the government has provided extra funding, uncertainty remains as to how the pandemic will continue to affect the council’s finances into the next financial year.
“The council is taking a prudent approach to its budget setting for next year, to ensure that it can continue to provide its services, as well as help local residents, businesses and community organisations affected by the pandemic.”
Before the pandemic struck, the council was facing ongoing reductions in funding from central government which fell from £4.8m in 2013 to around £200,000 in 2021/22.
It is facing a predicted funding gap of around £2.4m over the next three years.
To cover this shortfall, the council said it had developed plans to boost economic growth, make services more efficient, make savings, and generate more income such as through investments.
The consultation asks people for their views on this approach taken by the council and how they feel about things such as charges, making more use of online services, using land to generate more income, and investing in commercial opportunities.
Councillor Jim Lister, executive member with responsibility for finance, said: “I’d encourage everyone to have their say on our budget proposals.
“This past year has presented incredible challenges to the council as well as to the communities we serve. I’ve been immensely proud of the way we have responded to the pandemic, as well as managed to maintain such a good level of service to the people of Allerdale.
“Our budget for next year is being developed to continue that path. No-one takes the decision to increase taxation lightly, however small an increase.
“And we do recognise that there are some residents who are struggling and so I urge them to contact the council and ask about the council tax support schemes which are available.
“However, this proposed increase in council tax, will help to maintain our services at a time when our communities need them most.”
The full budget consultation and links to the consultation questions, can be found on the council’s website at: https://cumbria.citizenspace.com/allerdale-borough-council/budget-2021-22-consultation/
The consultation ends at 5pm on January 15.
Hard copies of the consultation can be requested by emailing [email protected].
Anyone without access to the internet can request a copy of the survey by ringing 0303 123 1702 and speaking to a customer service advisor.