South Holland District Council is set to increase its Band D Council Tax by to £214 for the coming year, a rise of 3.06 per cent.
The county council is looking to implement a 2.9 per cent rise of £47 a year to £1,672 and the Police and Crime Commissioner’s precept is an extra £333. There will also be parish and town council precepts to add to the total bill.
Members of South Holland’s cabinet are due to discuss the budget at a meeting on Tuesday (Feb 17) and are likely to recommend the increase goes ahead for the coming financial year.
“This year’s budget has been set within a background of unprecedented inflationary pressures and significant changes in resident, customer and business needs as well as proposed significant changes to funding arrangements,” the report says.
The budget assumes a three per cent pay award in the coming year along with a five per cent increase from the Internal Drainage Board levy to a total of £3.74m. Following a national pension review, the contribution for staff will be 18.3 per cent.
A five-year medium-term plan shows that the council’s element of tax bill for Band D will rise from £6.7m this year to £8.1m in 2030/31.
Council fees for a raft of services are set to rise this year – including garden waste collection rising to £62.50 from £59.50. Car parking permits are not set to rise, but there will be increases at Castle Sports when it opens later this year – with adult swimming charges rising to £5.20 from £5.
A revaluation exercise for business rates takes effect from April and the district council, as the collecting authority, will retain less of the tax than previously under the old system, although it receives more in the annual Revenue Support Grant from the government.
The council is also putting up the income it receives from a range of fees, charges and rental income between now and 2030/31. This financial year sees an income of £5.789m but the figure rises to £7.19m by 2030/31.
It will also see the amount received from other sources, such as court income and council tax fees, fall from £28.4m this year to £16.19m in 2030/31.
But the council’s spending plans over the next four years will also see a rise in the amount it is paying in interest on loans. This financial year has an £18,000 annual interest bill, but by 2030 it will be £250,000.
There is also a rising cost with the internal drainage boards, which have a levy on the council. Figures show a five per cent increase each year although it needs confirmation.
“Lobbying of Government remains ongoing, as the embedded levy results in a recurring loss of revenue for the council that grows with each passing year,” says the report.
“There are no signs of an upturn in council, or indeed government finances to provide optimism.
“Council must continue to look to become self-financing.”
