Householders in Lincoln face paying a higher rate of council tax for the second successive year, after City of Lincoln councillors agreed on draft plans to raise their share by nearly 2%.
City of Lincoln councillors approved a 1.91% increase in their portion of council tax for the 2016/2017 financial year at a meeting of the Executive on Monday, January 25.
The proposed rise, which will mean a £3.60 rise in council tax for Band D properties, will now go out for consultation until Monday, February 15.
It will then go before full council on Tuesday, March 1 for approval and implementation.
While the council collects council tax from residents in the city, it keeps only 16% of it.
The rest goes to Lincolnshire County Council, which plans to raise council tax by 3.95%, and the Police and Crime Commissioner.
The city council has pointed to “unprecedented financial challenges” following Chancellor George Osborne’s Spending Review in November 2015 as a reason for the rise.
The authority claims its government grant will drop by 99% over the next four years from £2.585 million to £22,000 in 2019/20.
In response to this, further savings of £1 million on top of the current target will need to be identified by 2018/19.
Jaclyn Gibson, Chief Finance Officer at the city council, said: “The authority will do all it can to minimise the impact of these reductions and prioritise the services that are needed most by the people of Lincoln.
“While not being an easy task, it is a challenge that will be faced constructively and making sure that at the heart of this decision making there remains a focus on the four main priorities of being a fit-for-purpose authority, protecting the poorest people in the city, increasing the supply of affordable housing and growing the local economy.”