District Council Set To Increase Council Tax
Written by HFM News on 20th January 2021
Harborough District Council is proposing increasing its share of Council tax, as it battles to deal with a ‘significant financial challenge’.
The charge will rise by £5 a year for the average Band D property, the maximum allowed by government, if the authority’s budget for the forthcoming year is approved.
Ever-increasing demand for services, a reduction in its government grant and the impact of the pandemic, with lost income and increased costs, has left the Council with a budget gap of around £4m this year.
However, the Council will continue with its Capital Programme.
Harborough District Council Leader Phil King spoke to Hfm:
Under the proposals, a resident in a Band D property would pay £172.97 to the District Council for the year 2021/22, to fund services including waste and recycling, planning, housing, parks and open spaces, street cleaning and environmental health,
That equates to about 9% of the overall bill – the rest will be made up of charges from Leicestershire County Council, Leicestershire Police, Leicestershire Fire and Rescue Service and Parish Councils in some areas.
The coronavirus pandemic has meant the Council has lost significant revenue and had to provide services in new and innovative ways, with a cost to the Council of approximately £2.3m.
Whilst this cost has been partly met by direct government support, it still leaves a deficit to the Council of nearly £1m (£976k).
To address these challenges, the Council launched Budget Challenge 2025 (BC25), which aims to ‘transform’ services, and ensuring that sufficient financial resources are allocated to key priority areas.
Savings have been, and are continuing to be, identified in all Council service areas. The Council will also look at opportunities to provide long-term income to boost financial sustainability and resilience.
Have your say on the budget, and find out more about the proposals, on Council’s website at www.harborough.gov.uk/consultation until 1 February 2021.
A final decision on the Council’s budget will be taken next month.
Leicestershire County Council is proposing a 1.99% increase in its part of the Council tax bill.
