Lincolnshire County Council to lose £9million Rural Support Grant

Council tax bills could be rising next year following a Government decision to axe a £9million grant.

Lincolnshire County Council is seeking assurances from the Government that additional funding will be coming its way after the decision to scrap the Rural Services Grant.

But the council’s budgets are under pressure due to rising costs and increased demand in in adult social care, children’s services and home-to-school-transport.

And the recent increase in national insurance contributions is expected to raise costs by up to a further £15m, with the rise in the national living wage costing at least an additional £5m.

The council estimates that that even before these new pressures, Lincolnshire is being short-changed by more than £100m a year due to the Government’s funding formula.

Coun Mart Hill, county council leader, said: “While some additional money has been promised, there is also very significant cause for concern that it will not be enough to cover these huge extra costs.

“We are particularly disappointed to see that the Rural Services Delivery Grant has been scrapped. This was introduced in recognition of the additional challenges rural authorities face in delivering services, and its removal seems like a backward step.

“Instead, the government has said it will focus on ‘deprivation’ in reforming the funding system. There is currently no clarity as to what this means, and we have a real fear that money will be taken from rural communities and given to urban areas – making our unfair deal even worse.

“We need assurances from Government that we will be compensated for these additional costs in this year’s settlement. At present all that appears certain is the Government’s expectation of a five per cent increase in council tax.”