Gedling Borough Council is likely to its raise council tax by 2.99 per cent from April after the authority’s cabinet gave the move the green light.
The Labour-run council’s draft budget for the financial year ahead was discussed at a meeting of senior councillors and officers on Thursday (February 13).
Tina Adams, the head of finance at Gedling Borough Council, presented the plans.
She said Gedling’s Government funding settlement was “disappointing” due to the removal of grants, and that the planned increase in National Insurance contributions has added pressure on budgets.
Chancellor Rachel Reeves has said rate of employer contributions will increase from 13.8 per cent to 15 per cent from April.
This change is expected to add significant costs to local councils across the country.
Ms Adams said: “In terms of the settlements, it was quite disappointing for Gedling.
“There was the removal of two grants, the Funding Guarantee grant and the Services Grant.
“This equates to a reduction of £247,000.
“This was only partially offset by two new grants, the Funding Floor grant awarded at £146,000 and the Recovery Grant awarded at £49,000 equating to a total net loss of £183,500.”
The government announced it would fund the increase of National Insurance for councils, however the final settlement revealed Gedling’s allocation is only £114,000 – against a pressure of almost £400,000.
The council has proposed a 2.99 per cent rise increase in its part of council tax bills for the 12 months from April.
This means properties in Band A will pay an increase of £3.75 per year, while Band D properties will pay £4.38 more per year.
Those in Band C properties will pay an extra £5 per year, and Band D households will pay £5.65 more per annum.
The highest Band H will pay an extra £11.25 per year.
The increase is slightly higher than the 2.98 per cent rise which was also brought in last year.
The authority got a 0.92 per cent increase in central Government grant for the year – significantly less than the 6.8 per cent average Government grant rise for all councils across England.
The cabinet approved the recommendations of the draft budget with a unanimous vote.
The financial plan will be presented at a full council meeting for final approval on Wednesday, March 5.
Final household council tax bills in Nottinghamshire include portions for either the county or city council, plus a district or borough council, and contributions for the police and fire services.
All these authorities are now setting rates for the year ahead, with final total bills known in March.
