Double digit hike in town precept proposed

Town councillors are set to hike their portion of council tax by at least 11% as they seek to set their annual budget next week.

At a special meeting next week, town councillors will be asked to support an increase to the town precept of 11.7% - collecting from you £896,002 for the upcoming financial year.

The rise, which results in a smaller percentage increase per household due to an increase in houses, means an increased fee of £19.78 per year for a Band D property. You can see the impact on other Band properties by scrolling down.

The recommendation is lower than the third draft budget which was considered by town councillors in November.

At the meeting, the Town Council's Responsible Finance Officer (RFO) will present a comprehensive report outlining the financial landscape and the challenging decisions ahead.

In the report, the RFO states:

"In general, there have been significant price increases in goods & services purchased by NLTC including increases to staff pay (which are agreed nationally between local government employers and unions and are therefore outside NLTC control) and changes to councillor allowances."

"The combination of increased costs and the large precept subsidy in 2023-24 has resulted in a disconnect between the services & projects the Council has resolved to carry out in the town and the level of precept raised. "

"In the opinion of the RFO, Council has now reached the point where it needs to either raise the required funds or cut projects and/or services. (Every £8,000 needed results in an increase of approximately 1% on top of the 2023-24 precept)."

The Town Council's reserves strategy aims for general reserves equal to 2 to 3 months' expenditure. However, by 31/03/24, the estimated reserves are likely to be around 1.8 months' expenditure.

Proposed changes in terms of yearly charge per band per household

The budget also includes no contribution to the Major Refurbishment Fund which stands at £90,000.

The budget as presented includes income of £14,901 and a precept of £896,002 to give a total expenditure of £910,903 for the 2024/2025 financial year.