There will be a 7p per week increase in Council Tax for most homes, after East Lindsey District Council set its budget for the 2013/14 financial year.
While ELDC has put up its part of the Council Tax Lincolnshire County Council has frozen its share. “Although a balanced budget has been agreed by council, which protects front line services for the forthcoming year, the following year’s budget will be tough and councillors will need to take some difficult decisions in relation to the services the council can afford to provide,” said Coun John Upsall, Portfolio Holder for Finance.
ELDC say for 2013/14 it needed to find £1.6m in savings from its running costs to ‘balance its books’ due to reduced government funding and cost rises. The council says this has been achieved through ‘more efficient and effective ways of working’, a change to fees and charges and the 7p per week increase in Council Tax for most homes. For 2014/15 ELDC needs to find a further £2m in savings.
An ELDC spokesperson said: “ELDC had £23,030,000 held with banks as at February 28. As the collection Authority, ELDC is required to collect payments of Council Tax and Business Rates on behalf of central government, the Local Police Authority, County Council and Town and Parish Councils. This results in large fluctuations in the levels of balances held on a daily basis.
“Next week ELDC will be paying out over £6 million to the other organisations for their share of the Council Tax and Business Rates income collected. This will reduce the amount held with banks to approximately £17 million. Much of this is allocated to major projects in the district, such as flood alleviation schemes, new waste collection fleet, economic development activities such as improved broadband and business development grants; affordable housing and Disabled Facility Grants. To ensure the Council can deal with major operational issues that arise, the Council maintains a general fund of £2m in its accounts. Interest in 2012/13 is expected to total £400,000, which is ‘revenue income’ used to help protect front line services.”