Government funding for St Albans city and district council will drop by over £4 million in the next three years, according to forecasts in the new budget.

The council cabinet recommended a draft corporate plan and next year’s budget to full council at a meeting on Thursday (November 24).

The draft budget for 2017-18 anticipates the council’s funding from government will reduce to £2.8 million in 2020-21, from the current £7 million.

A number of policies in the draft corporate plan for 2017-22 includes investing £18 million in Harpenden’s leisure facilities and projects creating a new museum and art gallery.

Plans were also laid out to build affordable housing on disused garage sites and for the development of the city centre.

The council’s current base budget is £30 million.

Savings of £1.3 million have been identified for 2017/18 in an attempt to bridge the gap between anticipated spending and income affected by reduced government funding, national policy changes and rising inflation.

Council tax will increase by one per cent alongside inflation, though the localised council tax support scheme to help people struggling to pay will also be uprated by one per cent.

The draft budget also includes provision for a rent reduction for council tenants of one per cent a year, in line with national policy.

Leader of the council Cllr Julian Daly said: “We are proud to be delivering high quality services and holding Council tax down, despite big reductions in central government funding.

“We continue to invest in the future of the district and in meeting the needs of residents.

“For example, we have delivered three new leisure facilities and refurbished a number of housing schemes with the support of housing association partners.

“We aim to deliver the new museum and art gallery with financial support from the Heritage Lottery Fund, charitable trusts and public fundraising.

“The district council’s element of council tax has been frozen for eight years despite continued reductions in government funding.

“Our strategy going forward to 2020 is to keep council tax increases low, while continuing to improve our services by making them more customer-focused.”

The draft corporate plan and budget will be presented to Full Council for consideration next Wednesday (December 7).