Lincolnshire County Council is to increase its share of council tax by 3.5 per cent, but it still plans to dip into emergency reserves to cover a projected nearly £20m surplus by 2023.
The council tax rise will mean a Band D property would pay £45.18 more than last year, the authority says.
The council says two per cent of the increase with be specifically allocated for adult social care.
It’s revealed in the authority’s Mid-Term Financial Strategy which was backed by the county’s authority this morning (Tuesday, Janaury 7).
The report states that the council’s budget for 2020/21 is balenced but predicts a £13.7m budget shortfall in 2021/22 which reduces to a £6.1m shortfall in 2022/23.
The report states: “In these latter two years, the deficit could be covered by calling on our Financial Volatility reserve, which currently stands at £55.769m, although we expect to deliver further savings which will reduce the deficits.”
Coun Martin Hill, Leader of Lincolnshire County Council, says that in the next financial year the authority will look to spend more on highways.
He said: “We know that road repairs and flooding are a priority for many residents.
“So, despite the continued reduction in our main government grant, we’re proposing to spend around £4m on 16 extra highways gangs next year, who’ll carry out additional maintenance across the county, including pothole repairs.
“In addition, more than £2m will go towards extra drainage repairs and new flood-response equipment for Lincolnshire Fire and Rescue.
“£350,000 will be set aside for a ‘green masterplan’, with the council aiming to become carbon neutral by 2050 – or sooner if that’s practicable.”
Cllr Hill added: “Although it’s an improving picture for council finances, there are still challenges ahead, particularly with regard to the ever-growing demand for adult care.
“The government has provided an additional £14m towards adults and children’s social care this year, but we urgently need to see a long-term plan for dealing with an ageing population.
“It’s vital this uncertainty over future funding is addressed so we can be sure that residents will continue to receive the best possible care.
“We’ll also continue to push for fairer funding for Lincolnshire. It’s long been recognised that rural areas like ours receive less than their fair share of Government money. It’s time for that to be put right.”
