COUNCIL TAX SET TO RISE BY 1.98 PER CENT AS NELC LOOKS TO CHALLENGES AHEAD

 

IT looks like a 1.98 per cent increase is on the cards for North East Lincolnshire Council residents for 2021-22.

This is the figure likely to be approved at a cabinet meeting tomorrow in readiness for rubber-stamping at a full council meeting next month. 

As part of financial planning, the authority is also set to establish  a Covid-19 reserve fund to mitigate against the ongoing risks associated with the pandemic.

A report to the cabinet meeting states: "When the pandemic hit early in the financial year, the impact was unprecedented, not just on council finances but on local economies and communities. 

"An extensive range of one-off financial support measures from central government have been received, and this has significantly mitigated the financial impacts associated with managing the pandemic at local level.

"During ongoing financial planning, we have significantly reviewed our plans to ensure that we are able to remain financially resilient over the coming years.

"Our priorities remain - we must continue to maximise opportunity whilst continuing to deliver efficient and effective public services. 

"However, it is acknowledged that there are a number of fundamental uncertainties around local government and NHS reform, Covd-19 and EU exit at the present time."

The report continues: " As a consequence of the pandemic, we have seen a continued slowdown in the local economy which has resulted in reduced collection rates within both council tax and business rates. 

"Local taxation makes up around 80 per cent of the council’s overall income base and is therefore very sensitive to any change. 

"Dependent on the pace at which the local economy recovers, there is likely to be a continued impact on collection rates and bad debts over this financial planning period."

Inevitably, the pandemic has also led to increased social care demand.

The report states: " It remains to be seen whether or not this increase in demand is long-term, but we do anticipate higher numbers of children and adults accessing social care services."

Since the Conservatives took control of the authority in May 2019, there has been a more commercial approach, and it is hoped this will breathe new life into the local economy.

NELC is working alongside Government and major private investors to accelerate economic and housing growth across the borough. 

Major projects at within the Port of Immingham, Stallingborough Enterprise Zone and in the town centres are planned and factored into the Council’s revised capital investment programme.