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South Kesteven District Council agrees rise in its share of the council tax bill

South Kesteven District Council has approved a £5 council tax increase for 2021/22.

This will take the authority’s Band D share of the tax to £168.62 — a 3.06 per cent increase.

Approval was given in the authority’s full council meeting this afternoon (Monday), following scrutiny in its cabinet and joint overview and scrutiny committee early this year.

South kesteven District Council (25751526)
South kesteven District Council (25751526)

Council leader Kelham Cooke (Con) said in the meeting: “The budget setting process this year has been immensely difficult as we continue to deal with the Covid-19 pandemic, and the pressure that it has put on our communities and businesses, and on the services we deliver as a council.”

A report before councillors said: “The scale of the financial challenges ahead are significant and largely as a result of the external environment namely a further delay in the national review of the local government funding formula and the detrimental impact the pandemic has had on the council’s resources.”

The report said the financial outlook for the district “remains uncertain”, however, notes a number of settlements and financial measures announced by government including the income losses compensation scheme.

A number of national reductions in funding means SKDC predicts its income will reduce from £18.5 million to £13.4 million by 2024-25 and, so money will have to come from elsewhere.

Meanwhile, Lincolnshire County Council will raise its element of the tax bill by 1.99 per cent, and the rise in the Lincolnshire Police precept equates to £251.37 a year for the average band D properties in the county – around £14.94 a week.

Nationally, Rishi Sunak, Chancellor of the Exchequer, will announce details of his spring budget on Wednesday, where he is predicted to extend the furlough scheme until at least May.

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