South Holland District Council has planned a £5 annual increase in its element of the bill.
The Police and Crime Commissioner for Lincolnshire, Marc Jones, is yet to propose a police precept, but a two per cent rise would a further £4. In a budget consultation it stated even with a two per cent rise there would still be a funding deficit due to falling central Government contributions.
The county council is part way through a drive to make savings of around £100million due to funding cuts.
A report to its overview and scrutiny management committee meeting on January 26 confirms the county council will receive £1.55m more in Government grants than previously budgeted for but recommends that is used to reduce slightly the amount of reserve funding being spent to balance the books. It was originally proposed to spend £27.9m from the ‘Financial Volatility Reserve’ in the next financial year, the balance of which was expected to stand at £49.6m by April 2018.
The overview and scrutiny committee report said: “Overall levels of funding to local government are reducing and will continue to reduce in future years.
“Use of this funding to smooth the effect of these reductions will allow the council more time to develop robust new service models.
“Continuing to reduce service spending while securing additional income from an increase in council tax, by 3.95 per cent should make the council more resilient to the pressures caused by reduced funding.”
A report to the county council’s executive in December, when the 3.5 per cent rise was first suggested, said: “The council remains aware of its high priority areas, but no service has been exempted from helping the council to deliver its savings target.
“These high priority areas are: safeguarding children and adults; maintaining and developing highways and infrastructure; managing flood risks; supporting communities to support themselves and fire and rescue services.”
It added: “During the next 12 months the council will need to explore further opportunities to bridge the gap between the funding available and levels of expenditure.”
The county council proposed increase includes a two per cent for ‘adult care’.
A consultation meeting with local business representatives, trade unions and other partners is timetabled for January 27.
Residents can contribute to a public consultation until Sunday, February 5, with the executive due to meet two days later in order to make its recommendations to full council, for approval on Friday, February 24.
