January 7, 2019 5.22 pm This story is over 32 months old

North East Lincolnshire set for 2.98% council tax hike

Budgets still squeezed by cuts

Senior councillors in North East Lincolnshire will propose a 2.98% increase in council tax for 2019/20.

The increase is expected to raise £61.2 million for the council over the next year, with £4.9 million ringfenced for adult social care.

The authority said the move is in line with budget plans which were passed last March.

The council’s cabinet will meet to discuss the proposal on January 16 and the full council will give a final approval in February.

Council leader Ray Oxby said in November last year that the authority was “facing a challenging time” following cuts to local government.

Leader of North East Lincolnshire Council, Councillor Ray Oxby

Sharon Wroot, director of resources and governance, described council tax as the “key source of funding” for the authority.

“Government grants are reducing over the period of the financial plan, and will significantly change under the forthcoming spending reforms,” she said.

“There is an expectation that local sources of taxation, including council tax, are able to increase to offset this reduction and minimise disruption to service delivery.

“Whilst keeping council tax as low as possible can be helpful to residents, particularly in the current economic climate, the significance of this funding stream is such that not increasing it can have long term consequences.”

It comes as authority’s across the region are looking at other avenues of income in the face of funding cuts from government.

Councils are expected to see a further reduction in their revenue support grant, the main source of funding from central government.

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