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South Kesteven District Council looks to raise council tax portion by highest amount possible




District councillors will be asked to support a £5 increase in council tax – the highest amount possible – for band D properties next week.

South Kesteven District Council's budget will go before a scrutiny committee on Monday before cabinet members vote on the move on Tuesday.

In a report before members, officers said the council would also need to use around half of a £3 million “budget stabilisation reserve”.

SKDC (61166921)
SKDC (61166921)

The report said the proposals were “prepared in the context of significant financial external events that are occurring that are having a detrimental impact on the council’s financial outlook”.

They include escalation inflation, energy prices and employee pay.

“These are in the main part caused by national issues, beyond the council’s control, and are impacting on all councils,” said the report.

“In addition, the current cost of living crisis has the potential to increase demand for the council’s services by those who rely on the support provided by local government.

“These unforeseen and unavoidable pressures have seriously impacted the assumptions that underpin the Medium Term Financial Plan.

“The financial future remains uncertain as demonstrated by the Office for Budget Responsibility economic financial outlook.”

Officers said the “only short-term” solution was to utilise £1.534m of its £2.904m budget stabilisation reserve to balance the books.

“This can only be a one-off event and council will be required to address this issue by fundamentally reviewing its financial plans to ensure a sustainable outlook without further reliance on reserves,” said officers.

Under the government’s rules, councils can apply a rise of 2.99 per cent or £5 to council tax, depending which is higher.

The proposed rise will bring in an extra £256,000 to the council.

Elsewhere, the council continues to face reduced grants from government both in payments this year and real-terms losses due to no changes.

The council also hopes to make £600,000 of savings and £200,000 extra through fees and charges.

Tomorrow (Wednesday), Lincolnshire County Councillors will vote on whether to raise its council tax by nearly five per cent.

It has warned it would need to use up to £10.3million of its £16.4 million reserves to balance the budget if it did not.

The report puts forward three options for council tax rises in the next financial year, including a rise of two per cent for adult social care (ASC) and 0.99 per cent general tax using the £10.3 million reserves.

Other options include two per cent ASC and 1.99 per cent general taxation rise resulting in a use of £6.9 million reserves, and two per cent ASC and 2.99 per cent general which would mean the council needing to use just £3.4 million reserves.



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