Council tax increase necessary to balance books

County chiefs have pulled back from imposing the maximum increase in council tax on residents.

The Reform UK controlling group on Lincolnshire County Council had been considering increasing the levy on households by 4.99 per cent but has opted for a 2.9 per cent rise – equivalent to a 90p a week increase on a Band D property.

The executive group of councillors said the increase was ‘absolutely necessary’ to balance the books.

Council Leader, Cllr Sean Matthews explained: “This is our first budget as a new administration and we’re faced with costs that have gone up by more than £80million and hundreds of millions of pounds of historic debt. 

“The government has provided some additional funding this year to reflect that the county has been under-funded in the past, but it won’t be anywhere near enough to cover this. We are meeting that challenge by rooting out wasteful spending, doing things differently and funding future projects without having to borrow money.”

In addition to an extra £36m from the government, the budget proposals include £15m of efficiency savings, £1m of savings from senior management, and using a small proportion of the council’s reserves.

Cllr Matthews continued, “None of the executive want to put council tax up at all, but we can assure residents that the small increase they will pay is only what is absolutely necessary to balance the books and deal with these increased costs. In return, we will continue to find efficiencies and ensure every pound of your money is spent wisely. 

“We have been left a legacy of projects which need to be finished, such as major road projects, so we have little choice but to make sure they are funded to completion. But just like residents save up for bigger purchases, the council should be the same. We will not be racking up more debt for future projects.”

Residents’ council tax is made up of levies from three bodies, the county authority, City of Lincoln Council and Lincolnshire Police.

The city council has plans to freeze its share of the bill at last year’s levels while the Police and Crime Commissioner Marc Jones has put forward plans for an increase of 4.7 per cent, taking a Band D Property up £14.94 to £333.09 a year for a Band D property. 

The total council tax for a band D Property would be in the region of £2,323 if the proposed rates are agreed.

The county council’s Executive will put its final budget proposals to full council on February 20.