PARKING charges could rise while services may be axed in Cirencester.

That’s the stark warning from Cotswold District Council leader Joe Harris, who said that local councils may have to increase council tax, raise parking charges and make further cuts to services due to insufficient government funding.

Councillor Harris, who also serves as vice chair of the Local Government Association, expressed deep concerns about the future of local government amid the announcement of the UK Budget.

He described the sector as ‘on life support’ following the government’s recent announcement of an additional £1.3 billion in grant funding.

“The reality is bleak,” said Cllr Harris.

“According to the LGA, councils across the UK need at least £2.3 billion next year just to maintain services at current levels.

“The government’s offer falls far short of what’s required, leaving councils in a perilous financial position.”

Chancellor Rachel Reeves raised taxes to a historic high and sent borrowing soaring as she gambled on increased spending to boost growth and repair public services.

The Chancellor used her first Budget to announce £40 billion a year in extra taxes, with money being poured into schools, hospitals, transport and housing.

But despite Labour’s promises to protect ‘working people’, a £25.7 billion increase in National Insurance contributions paid by employers is likely to reduce wages and lead to job losses.

The overall tax burden will reach a record 38.3% of gross domestic product in 2027-28, the highest since 1948.

And changing the way government debt is measured allowed the Chancellor greater flexibility to borrow, resulting in what the Office for Budget Responsibility called ‘one of the largest fiscal loosenings’ in recent decades.

While Cllr Harris welcomed announcements on funding for affordable housing and pothole repairs, he cautioned that the impact of these measures would be minimal.

“Gloucestershire alone faces a backlog of road repairs worth tens of millions of pounds,” he said.

“The £500 million announced yesterday for the entire country won’t even begin to address the scale of the problem.”

Cllr Harris also criticised the government’s decision to cut the Winter Fuel allowance for pensioners.

He warned that it will push more vulnerable residents to seek assistance from local councils, placing more strain on already-overstretched services.

“Despite all the talk of change from the new Labour government, austerity remains alive and well for local councils,” he said.

“Nothing announced yesterday will give Gloucestershire’s council leaders any confidence that we can avoid further tax increases or cuts to services.

“Over the past 15 years, local government funding has been decimated.

“Regardless of our political differences, none of us came into public service to make things worse for our residents - but the government is leaving us with few options.

“We are at breaking point.”