Impending Council Tax Rises as $2m Budget Gap Hits Lincoln
The City of Lincoln Council appears to be staring down the barrel of a budget deficit of around £2 million, which could potentially lead to a hike in council taxes. According to a recent report, the council's fiscal challenges will likely more than double by the year 2028, with escalating demand for temporary accommodation being one of the main drivers.
Cost Cutting Measures Required
The report further outlines that the annual expenditure of the council needs to be reduced by approximately £2 million by 2026/27. Providing insights into this matter, leader of the city council, Cllr Ric Metcalfe stressed:
"Over the past decade, the council has delivered annual revenue savings of almost £10 million. However, each year, the challenge to save more becomes increasingly hard."
England's Councils Face Funding Gaps
An analysis by the Local Government Association reveals that councils across England are confronting a funding gap of roughly £3 billion in the upcoming couple of years in order to maintain service levels. This amount assumes that all councils will maximise their council tax rates each year before a referendum is made mandatory.
Previous Council Tax Increase
In 2023, taxpayers in Lincoln got an extra burden to bear with a 2.99 percent tax increase, meaning an additional £8.46 yearly for a band D property. This was on top of a 4.99 percent increase by Lincolnshire County Council and a 5.41 percent rise by Lincolnshire Police. Consequently, band D council tax residents in Lincoln are now coughing up £2,094.12 annually, a 4.74 percent jump compared to the previous year.
Protecting Services Amid Fiscal Challenges
Cllr Metcalfe assured that the council is committed to safeguarding services. He noted:
"We have identified opportunities to reduce costs, generate new income sources, and decrease service demand. This will help deliver the required savings over the next few years without significant service reductions."
Maintaining service levels amidst financial hardships is the ultimate priority, but without additional financial backing from the central government, it may be difficult to continue at the current level. No decision on future council tax hikes has been finalised yet.
Protecting Essential Services is the Key
City of Lincoln Council’s Liberal Democrats, represented by Cllr Clare Smalley and Cllr Martin Christopher, voiced concerns over the fiscal difficulties, arguing the need to focus primarily on preserving essential services.