Grantham Town Council debates budget and possibly trebling its precept for 2025
A newly returned town council could treble its precept after just one year as it battles to become financially sustainable.
Grantham Town Council’s full council meeting on Thursday was presented with a draft report on its proposed budget setting and precept for 2025-26, which will be officially signed off and submitted to South Kesteven District Council by January 17.
For Band D households, annual contributions could rise from approximately £4 to £12.
While this is less than neighbouring towns such as Stamford, councillors questioned whether residents would see tangible benefits, particularly when this comes on top of the amount taken by district and county councils and the police precept.
Councillors placed some of the blame for the current budget challenges on decisions made by the previous charter trustees and South Kesteven District Council in the lead-up to the town council's formation and the setting of the annual budget prior to the election.
Finance committee chairman Paul Stokes said: “When the vote was taken, I don’t think anybody misled on purpose, but patently the precept we were advised would be the right sort of figure… it’s obvious that it wasn’t enough, and therefore we’re now trebling the precept.”
Coun Tracey Forman said the precept was 'never going to be enough… it was just a fantasy'.
Councillors argued they faced higher-than-expected staffing costs, were hit with having to pay for the the Springfield Ward by-election, and had other unforeseen expenses.
South Kesteven District Council, for instance, is demanding the authority pay £5,700 rent maintenance to lease the mayor’s parlour, chair Tim Harrison told the committee. A vote took place to withhold the payment while more information was gathered last night.
Coun Lee Steptoe expressed concerns about the potential public backlash, questioning whether the council had the mandate to make such a significant decision.
"I can just imagine the reaction of local people if and when this precept is passed," Steptoe said.
"I would question whether this town council has the mandate to make that sort of decision."
He noted that when the council was set up, it had been “made very clear the first three years would be a scoping exercise”.
Other councillors said the precept increase was needed to run the council effectively.
Coun Nik Pattison explained: "This is actually the true cost of running a town council and in years going forward, unless we’re looking for services we’re going to need a budget for, there shouldn’t be such a massive hike.
“This could be the average cost year on year for running the town council. It was all hit and miss before; we didn't know how much it was going to cost."
Coun Bruce Wells said: “It's not that we want to put it up, but we can't afford not to because we won't get it to function.
“The previous charter trustees left us holding the baby (or the ball), and we must run with it.”
Councillors also suggested scaling back on certain expenses, such as hospitality, to prioritise initiatives that directly benefit the town.
"There are some things in here that are very, very debatable," Coun Forman said.
She noted that there was £3,000 budgeted for hospitality, adding: “In my head, that’s a huge amount of money to spend. It’s nice to get tea and coffees, but I don’t need it.
"If it doesn't make the town better, then I don't think we should have it in the budget."
However, they were told that even scaling back might not be enough to move forward.
Councillors stressed the need for clear messaging about what the increase would provide for residents.
Coun Rob Jackson said: “We need to recognise it will be an expectation that the public will see something different from what we've been able to do this year, and that then means that we've got to be clear about what it is that we are going to deliver for the people of the town.”
Councillors also suggested asking neighbouring parishes, like Harrowby and Londonthorpe, to help fund town events.
Grantham Town Council was voted into power in May of this year. Another by-election followed in September.
The final decision on the precept will be made on January 9, following further review of the proposed budget and councillor feedback.
What do you think? Are you happy to pay more for services in Grantham? Let us know your views in the comments below…