Lincolnshire County Council is proposing to increase its portion of the council tax bill for the first time in four years.
The suggested 1.9 per cent increase from April 1 would generate a further £4,272,000 and is the maximum percentage before the trigger point for a referendum at an estimated cost of £800,000.
In suggesting an increase, the council would pass up the opportunity of a one per cent grant offered by the government for councils which freeze their portion.
However, Lincolnshire says its intention is “to maximise funding and lessen any long-term impact on funding”.
The authority is receiving almost £94million in Revenue Support Grant from central government, which it claims is a reduction of 26.37 per cent on the previous year.
The council said: “We could decide to freeze council tax or increase it by a lesser amount but this would mean reducing our planned level of service to make the necessary savings.
“We could increase council tax by more than 1.9 per cent but this would mean holding a referendum at an estimated cost of £800,000 and placing an increased burden on the council tax payer during what are still difficult times.
“The preferred proposal reflects our fundamental review of our services and budgets and our judgment, subject to consultation, as to the appropriate balance of services and funding.”
People are being encouraged to give their views on the proposal, by no later than midnight on February 1. The council’s executive meets again on Tuesday, February 3, when it will recommend final proposals for approval by full council on February 20.
The county council’s portion accounts for about 73 per cent of the total bill.
