North East Lincolnshire Council Proposes Lower Tax Increase

A proposal to reduce a planned council tax increase in North East Lincolnshire is set to be voted on by councillors tonight. The council’s original draft budget suggested a rise of 4.99 percent, which included a 2 percent increase in the adult social care charge and a 2.99 percent increase on core council tax. However, following discussions at a special Cabinet budget meeting on February 18, 2024, this figure has been amended to 4.5 percent.

Although this adjusted increase remains higher than last year’s 3.98 percent, it reflects a more moderate approach than previously proposed. Council leader Cllr Philip Jackson (Conservative – Waltham Ward) advocated for the change, with a council financial officer indicating that it would not significantly impact the council’s budget estimates if appropriate mitigations are applied.

Council’s Financial Management Praised

The vote on the amended figure will take place during a full council meeting scheduled for February 19, 2024, alongside the broader budget for the council’s financial year 2026/27. Cllr Jackson highlighted the council’s effective financial management as a key reason for revising the tax increase downward. He stated, “I am pleased to say that this council has reported a solid and stable financial position over the last 12 months, and we end the year with one of the most positive performances for some considerable time.”

Cllr Stewart Swinburn (Conservative – Immingham), who holds the portfolio for housing, infrastructure, and transport, emphasized that the proposed budget does not include cuts to frontline services. Cllr Henry Hudson (Conservative – Wolds), responsible for environmental matters and net zero initiatives, remarked, “I think it’s a credit that we’re able to give this slight reduction, and that’s going to leave £400,000 in the pocket of residents.”

Context and Future Plans

In light of recent media reports, Cllr Jackson noted that around one hundred councils across the UK have requested additional financial support from the Government to address budgetary pressures. Notably, North East Lincolnshire Council is not among these, with Cllr Jackson asserting, “We’re increasing our council tax by less than most authorities up and down the country.” He acknowledged the financial pressures many households are facing, which contributed to the council’s decision to reconsider the tax increase.

The broader draft budget includes plans for a revised improvement strategy for the council’s children’s services, aimed at enhancing financial sustainability. There is also a commitment to ongoing transformation in adult social care to meet increasing demand and to advance significant investment initiatives, such as the redevelopment of the western end of Freshney Place.

Since losing its majority following the 2024 local elections, the Conservative administration has relied on support from the Liberal Democrats to pass critical votes, including last year’s budget.