Kingfisher Caravan Park to miss out on £850k income next year as ELDC looks to increase council tax

An East Lindsey caravan park is estimated to miss out on £850,000 of income next year as council leaders face “significant uncertainty” over the future and look to increase council tax by 3.26% next week.

The authority’s Overview Committee next Tuesday will be asked to approve the plans for a £4.95 council tax increase as the council looks to balance the books.

The increase will see a Band D property pay £156.69 to ELDC for 2022/23 and the council hopes it will help bring in an extra £336,839.

A statement attached to the budget by ELDC’s executive board member for finance said Councillor Richard Fry said: “The unprecedented challenges faced by all of us in 2021/22 have continued into 2022/23.

“The government has provided a one year settlement which has taken some uncertainty away regarding certain grants, however the uncertainty remains significant and into the medium term.”

The council will also be looking to generate income through its commercial activities activities – including a “flagship development in Chapel St Leonards”, however, the report notes that there is more uncertainty around income due to COVID.

ELDC’s Portfolio Holder for Finance Councillor Richard Fry. | Photo: ELDC

In addition, it notes a “significant drop in income” with the Kingfisher Caravan Park which is in the middle of a court action from residents who disagree with the council’s decision to force caravans older than 25 years off the site.

The report estimates an £854,000 drop in fees and charges for the site going into next year, with income dropping from £1,874,000 to £1,020,000

It said, however, that “an action plan is being drawn up to address this area of concern for the longer term. ”

Councillor Fry praised the latest work to make savings with Boston Borough and South Holland District Councils as part of the South and East Lincolnshire Councils Partnership and the latest Towns Fund bid which has resulted in almost £50 million being awarded to the district.

He also points to other positives including a global funding increase, additional New Homes Bonus money, the availability of a “smoothing reserve” in order to offset the budget deficit predicted last year and a well-maintainted capital resource base.

“These and other investment activities will mean that our capital reserves will be significantly reduced over the coming three years to a level where they cover the core service needs of the District,” said Councilor Fry

“However this ambitious recovery programme will meet our commitment to continue supporting the economy of the District thereby supporting growth.”