The North East Lincolnshire Council’s draft budget hints at a small council tax rise, with discussions set to start soon.
Grimsby: The North East Lincolnshire Council is rolling out a draft budget. It suggests a modest council tax increase this year. Councillors will review it next week.
They’ll make a final decision on February 20. Local councils can raise core council tax by up to two percent. They can also add another two percent for social care.
Last year, the council raised taxes close to the maximum. This year, they’re proposing a 1.98 percent increase for core tax. The social care precept will go up by two percent.
This modest increase comes despite a projected budget gap of £4 million by 2026/27. The council’s reserves are also expected to drop by £3.5 million by 2025/26.
The council is waiting for its final funding details from the government. This info is expected in February, including funds for the national insurance increase.
Other highlights in the draft budget include a £2 million flexible use of capital receipts. This money comes from selling assets, like old school fields.
There’s also a £3.1 million grant to prepare for future waste disposal needs starting in 2026. Plus, foster carers will get 100 percent council tax relief for the first time.
This change will help about 100 households and cost around £143,000. The council expects business rates to improve as new projects get underway.
By 2025/26, business rates could contribute £55.9 million to the budget. That’s over a quarter of the council’s funding.
