Residents are being warned to brace themselves for a rise in council tax bills.
The county council element of the bill, the biggest slice of the pie, could see a 2.99 per cent council increase for 2025/26 – as the authority weighs up what to do with bills for the next financial year, writes Local Democracy Reporter James Turner.
A report scheduled for the Conservative-led authority’s executive meeting on Tuesday, January 7, outlines budget proposals for the next financial year based on the assumption of the near three per cent increase.
The proposed rise is expected to generate £11.7 million in additional income, based on the current council tax base, and would see a Band D home’s bills rise from £1,578.69 to £1,625.85 a year.
An assumed growth in the council tax base is forecast to generate a further £5.8 million, bringing the total additional income to £17.5 million for 2025/26. For comparison, a one per cent council tax increase would generate £3.9 million.
Following the release of the Ministry of Housing, Communities and Local Government’s provisional local government finance settlement on December 18, Lincolnshire County Council’s core spending power could increase by £33.6 million, or 4.7 per cent, for 2025/26. This is expected to be confirmed in the final local government finance settlement in February 2025.
By the end of January, the council will receive confirmation of the council tax base, business rates income, and collection fund balances from Lincolnshire’s district councils.
Once this information is available, the 2025/26 budget proposals will be finalised at the executive meeting on February 4, before being presented at the full council’s budget-setting meeting on February 21.
Individual authorities, including district and parish councils and the police, will be spending the coming weeks debating what to do about their share of the bill.
There is a challenging financial situation outlined in the county council’s medium-term financial plan, driven by significant increases in council service costs and the impact of national insurance changes.
A report drawn up for the executive stated: “Within the context of setting this budget, achieving the maximum funding would mean increasing council tax by five per cent. The budget proposal currently assumes increasing the rate by 2.99 per cent, although does reference the different options being considered. This would ensure the council is best placed to navigate any potential future challenges.”
The South Holland precept has yet to be revealed and it will be added to the county, parish and police elements to make-up the total amount billed.
