Councils along Lincolnshire’s east coast will next week join others in approving proposals to increase their share of council tax by almost £5.
Both Boston and East Lindsey are proposing the £4.95 increase, which is the highest the authorities can go before sparking a referendum.
For East Lindsey residents, this will see their share of Band D council tax go from £146.79 to £151.74 – a 3.37% increase.
While in Boston the same band will go from £192.96 to £197.91, a 2.57% rise.
A report before East Lindsey District Council’s Overview Committee said the authority has balanced its budget, despite the extra strain of the pandemic, but warns that a budget deficit of £1,285,000 will be reached by 2023/24.
It said work is “already underway” to bridge the gap including further development of the strategic alliance with Boston.
A foreword by Councillor Richard Fry said the authority faced “unprecedented challenges” in the last year.
He said spends and investments within the budget will see capital reserves “significantly reduced over the coming three years to a level where they cover the core service needs of the district.”
Meanwhile reports to both Boston’s Audit and Governance Committee and its cabinet say 2021/22 will have a surplus of £98k, but will face saving requirements of £700,000 per year from 2022/23 onwards.
“The overall financial position of the authority is generally healthy in view of the current economic pressures and as compared to several other authorities across the country.
“Whilst savings are likely to be required moving forward, depending on future government funding announcements, these are achievable with careful financial management,” said the report.
The authorities will join several others in reaching for higher tax rises, with South Holland also going for £4.95 (2.75%), South Kesteven going for a round £5 (3.06%) and Lincoln increasing by £5.31 (1.9%).
Lincolnshire County Council accepted a 1.99% rise, but declined to take an extra 3% for its adult social care precept. However, North East Lincolnshire has so far had no issues with taking the full 4.98% rise.
If the councils approve the budgets next week they will go to consultation and full council before April.