Residents will pay an extra 2.9 per cent tax under Reform’s first budget for Lincolnshire County Council.
Proposals to freeze council tax from Conservatives and to raise it by nearly five per cent from Independents were both rejected, writes Local Democracy Reporter Jamie Waller.
The marathon budget meeting last Friday (February 20) lasted for more than seven hours.
Reform leaders say the increase will be among the lowest of any county council, and claim it walks a line between too high and too low.
The authority has been awarded an extra £50million by the government for the next financial year, giving it much more breathing room than expected.
Coun Tom Catton, the executive for resources, said: “The message from residents has been they are worried about increased council tax, but also about the council not balancing the books and cutting services.”
He said a 2.9 per cent increase would deliver results without increased spending.
Conservative councillor Richard Davies said it was “only right that the taxpayer share in that benefit” of the increased government funding.
“We’ve got £50million extra in additional income, and aren’t in financial emergency. This is the first year we can do it responsibly,” he said.
On the other side, Independents proposed a 4.99 per cent council tax rise instead – the highest possible rate – saying it could be used to regenerate poorer areas.
Independent councillor Richard Cleaver said: “It would work out to an extra 44p per week for Band A, and raise £8.6million more funding to support areas which worst need it.”
Reform said its own proposal wouldn’t tax residents too much, while protecting services.
Executive growth councillor Liam Kelly claimed a freeze would “store problems up for the future”, while a higher rate would “squeeze the taxpayer further than we need to”.
A Band D property will pay £1,673.01 for the county portion of the council tax from April.
Meanwhile the county council has chosen to freeze the allowances members can claim, despite an independent panel suggesting large rises including a 13 per cent in the basic allowance.
Leader Coun Sean Matthews (pictured) said: “Given the cost of living crisis, it wouldn’t be appropriate to award ourselves a pay rise, particularly not of this magnitude. Given the state this country’s finances are in, it would be ridiculous to pass a low council tax increase and then give ourselves a big fat pay rise.”
