Lincoln council to decide on proposed 1.91% rise in council tax

City of Lincoln councillors are expected to agree on a 1.91% increase in their share of council tax for 2016-17 next week.

A meeting of the full council will take place on March 1 at City Hall, with councillors voting on recommendations to increase their portion of council tax for the second successive year.

If approved, council tax for Band D properties in the city will rise by £4.77 to £254.52 in a year.

Lincoln’s most expensive households will see an increase of nearly £10 in their bills.

The city council is responsible for collecting council tax from residents, but only keeps just over 16% of it.

The rest goes to Lincolnshire County Council and the Police and Crime Commissioner, who have both approved rises in their shares of council tax recently.

City of Lincoln Council’s Executive gave their backing to the rise in council tax in January, and the plans went out to consultation until February 15.

The 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.”

The city council will also vote on changes to rent payments for tenants living in council housing, which were supported by the Executive on February 22.