South Kesteven District Council proposes 2.99% council tax increase
It would mean Band D homes paying around £195
A council is proposing to increase its share of the tax bill by the maximum amount, saying ‘extra’ government funding actually amounted to a cut.
Members of South Kesteven District Council’s joint overview and scrutiny committee heard that the authority is planning to increase its share of the tax bill by 2.99 per cent for the 2026/27 financial year – the maximum amount that district councils are allowed without holding a referendum.
At a meeting on Tuesday, January 13, councillors heard that while the Government has increased its funding to local authorities as part of its ‘fairer funding review’, this actually amounts to a real-terms cut if the council tax rise is not taken into account.
Council leader Ashley Baxter (Independent – Market Deeping and West Deeping) said: “As part of the new funding regime, the Government has set out their core spending power which is predicated on councils applying for the maximum council tax increases to maintain baseline funding throughout the multi-year settlement.
“As outlined in the report, whilst the government press officers are boasting that local authority funding is increasing, the truth is that if council tax is excluded then Government funding actually reduces by £0.8 million over the three year period.
“By 2028/29, council tax will equate to more than 50 per cent of council funding which highlights the importance of future increases and how this will support the delivering of our vital council services.”
Coun Baxter went on to say that while the Government’s ‘fairer funding’ review has provided some certainty over the funding arrangements for the next three years, that this can only be achieved by assuming councils will raise their share of the tax bill by the maximum level.
He added that if the proposed council tax increase is excluded, the authority’s actual funding from Government reduces from £10.711 million to £9.893 million in 2028/29 – a reduction of £818,000.
Coun Baxter said: “If reductions are made to council tax then that will have a negative impact on the budget, and as a consequence, the projected deficit will increase.
“Therefore, we propose, with a heavy heart, a council tax increase of 2.99% which equates to a £5.66 increase, or 11 pence a week for a Band D property.”
But Coun Ben Green (Reform UK – Isaac Newton ward), said he disagreed with the authority’s proposal.
He said: “This is a tax and spend budget. The administration is proposing a 2.99% council tax rise, taking a band D property to around £195 a year and pulling roughly £405,000 more out of residents’ pockets.
“They will tell you this is modest but this is how it always starts. When money gets tight, the instinct is not to reform, not to prioritise, not to trim waste, it is simply to reach for the taxpayers’ wallet.”
The district council said that a public consultation will take place between January 19 and February 2 and councillors will make the final decision later.
Of the final bill that will arrive on doorsteps in the new financial year, some of the money will also go to Lincolnshire County Council, Lincolnshire Police, towards fire and rescue services and to local parish councils – with each having to take decisions on what to do about their share of the bill.