January 9, 2023 11.43 am This story is over 24 months old

City of Lincoln Council residents face almost 3% tax rise

More uncertainty for councils leading to more costs for residents

City of Lincoln residents will face a near 3% rise in council tax, while council housing rents will rise by more than 6% this year.

The authority’s executive committee will be examining its budget next Monday ahead of the plans going to consultation.

In documents before members, officers said the council needs to reduce a net cost base to its General Fund by £1.750 million by 2026/27 to make it sustainable.

As part of money-raising measures in the Government’s Local Government Finance Settlement this year, ministers have given councils the power to increase tax by 3% and officers are recommending a 2.90% rise to councillors this year.

It means a Band D property will pay £299.25 to the district council for 2023/24 – a rise of £8.72.

The officers said this could the be followed by a yearly rise of 1.90% until 2027/28.

As part of its measures, the council plans to use £693,000 of general fund reserve money by 2028 which will see its reserve cash go from £2.1 million to £1.583 million. £162,000 would be spent this year.

Elsewhere, the council plans to take advantage of Government permission to increase housing rents by 7% with a 6.5% rise on customers.

The increase will see average rent rise to £81.18 a week for general purpose and sheltered accommodation and £125.99 for affordable rent properties.

The report before the council said the authority faced “spiralling inflation, soaring energy prices and nationally agreed pay proposals” which added “significant cost pressures”.

“These are in the main caused by national issues, which are beyond the council’s control and that are impacting all councils,” said documents.

“In addition, the council is facing growing demands for some of its key services as those more vulnerable in the city, a client group that was impacted the hardest during Covid 19, look to the council for support as the cost-of-living crisis hits household incomes.”

It said there continued to be uncertainty around Government funding, with reforms not expected until 2025/26.

“As a result… the financial landscape for local government continues to pose an unprecedented challenge to the Council and is set in the context of this significant, inherent uncertainty.”

If approved, the budget will be subject to consultation and member scrutiny before appearing before the authority’s Full Council on February 21, 2023.