City of Lincoln Council has approved a 1.9% tax hike despite a series of cuts for 2021-22 due to the financial uncertainty around the COVID-19 pandemic.
The 1.9% rise will take city council’s share of council tax for a Band D property in Lincoln to £285.39 – an increase of £5.31.
The executive committee agreed on increasing allotment charges, council house and garage rents.
Council bosses predict a budget gap of £1.75 million and said it must close the hole for financial stability.
Allotment charges will also see most tenants pay between £58.70-£78.30 per year from 2022, an increase of between 38p and 51 pence per week.
Council housing rent will increase by an average of 1.5%, while council garage rents will increase by 3%.
The authority said it faces a number of ongoing challenges caused by the coronavirus pandemic and requires a substantial reduction in all of its budgets.
Cllr Ric Metcalfe, Leader of City of Lincoln Council said: “It’s a reasonably modest increase for most people, and we will support low income groups still with the concessions.”
The council has saved more than £9 million annually over the past decade, however will have to increase savings by £850,000 next year, rising to £1.75 million by 2023/24.
Due to the pandemic’s impact on government funded reliefs, empty properties and business closures, the authority estimates it will only retain £5.1 million of the £42 million of business rates generated in the city.
The draft budget will go to consultation and return before the council later this year for a final decision.