North East Lincolnshire Council Approves 4.5% Tax Increase

The North East Lincolnshire Council has officially approved a council tax increase of 4.5 percent for the 2026/27 fiscal year. This rise consists of a 2.5 percent increase in the core council tax and an additional 2 percent specifically for adult social care. The decision was reached following a series of amendments to the council’s budget, leading to what was described as an “outbreak of agreement” among councillors.

During the council meeting, the budget initially proposed a maximum pre-referendum increase of 4.99 percent, but this was revised just before the full council convened. The final vote resulted in 34 votes in favor of the tax increase, with only one vote against. The overall budget for 2026/27 also received unanimous support, with the same voting pattern observed.

Budget Amendments and Cross-Party Support

Three significant amendments to the budget were passed unanimously, showcasing cross-party collaboration. The Labour opposition group introduced a series of 12 measures aimed at enhancing street scene and waste management. Notably, these measures included the establishment of a heritage fund and a proposal for future council tax exemptions for terminally ill residents.

The Independent Group for North East Lincolnshire proposed an amendment that allocates up to £10 million over the next three years to support the revival of a permanent library in Grimsby town center. This funding could be utilized either for a new library or the renovation of the existing Grimsby Central Library, contingent upon future decisions.

Additionally, the Liberal Democrats’ amendment focused on reforming the local authority’s council tax debt recovery service. This initiative will trial a data-driven early referral system to connect residents in council tax debt with independent advice and support, while also increasing the capacity for debt advisory services.

The council’s budget also reaffirms its commitment to various regeneration projects, including the Freshney Place leisure scheme and several initiatives funded by the Cleethorpes Levelling Up Fund. Furthermore, the council is set to receive a significant boost of £7.4 million in highways funding from the Department for Transport, surpassing the usual financial allocation.

Concerns Over Tax Increase Decision

Despite the prevailing support, some councillors expressed reservations about the tax increase. Cllr Paul Henderson from the Independent Group noted that the council’s Section 151 officer had recommended maintaining the originally proposed 4.99 percent increase. He stated, “I find it really difficult to support a budget with a council settlement not backed by the financial director,” and cast the sole opposing vote.

Cllr Steve Holland, also from the Independent Group, criticized the last-minute changes to the tax increase. He argued that reducing the council tax by 0.5 percent without sufficient scrutiny was potentially “short-sighted,” especially considering the need for future government funding for projects like the proposed transport hub.

In response, council leader Cllr Philip Jackson emphasized the administration’s desire to keep taxes lower, stating, “The reason we’ve been able to propose a 0.5 percent lower council tax is because we’re financially resilient.”

The council’s support scheme for council tax remains unchanged, allowing eligible working-age residents to receive a maximum discount of 65 percent. The council reported an increase in participation in this program over the past year, attributed to improved accessibility and enhanced cooperation with local support organizations and Universal Credit services.