South Holland District Council finance chief warns of another significant rise in council tax tills unless IDB funding solution is found
Households could be facing another significant rise in their council tax bills next year unless an agreement can be reached to fund internal drainage boards.
The finance chief of South Holland District Council, Paul Redgate, has been to Parliament again to try to impress the urgency of finding a sustainable funding solution for the funding of drainage boards (IDBs) - as the overall cost is set to rise by another £4million and leaves authorities ‘in a precarious position’.
South Holland is one of a small number of councils in the country which have to pay an unfair special levy to drainage boards to ensure that water flowing from other areas does not flood the district.
High energy costs, wetter weather conditions along with wage rises are behind an average 28% increase in costs for IDBs since 2022-23, according to the Press Association.
And further pressure is being seen as the cash-strapped Environment Agency is also slashing the payments it makes to IDBS for dealing with water for higher areas - which could also see bills rising to make up the shortfall.
Last year, the district council increased its share of the council tax by 3% - but the £268,000 extra income was expected to be wiped out by the levy.
Coun Redgate, Portfolio Holder for Finance and Chairman of the Special Interest Group for Internal Drainage Board levies, pressed the case for change during an event in the House of Commons last week.
He said: “The Minister for Housing, Communities and Local Government, Jim McMahon OBE MP, attended the event and I was able to speak to him for a few minutes about the SIG and the urgency for funding reform. Thanks to our efforts, he was already aware of our concerns.
“The SIG is looking forward to meeting with the Minister in the near future to further progress a workable solution.
“The urgency for funding reform that takes the Special Levy out of Council Tax budgets cannot be underestimated.
“Early indications suggest that the Special levy could rise by 8 per cent next year. This would add another £4m to the £50m overall cost to councils. While the Government has helped some councils with one-off funds, this is just not enough or sustainable.
“We need a long-term funding solution that takes the Special Levy out of Council budgets and Government need to act swiftly. Every year that passes is decimating budgets and leaving councils in a precarious position with difficult decision making ahead.”
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