Bosses set to hike council tax by maximum amount

Council tax payers in East Yorkshire are facing a 4.99% increase to their bills

Plans to put council tax up by the maximum allowed have been announced by East Riding of Yorkshire Council (ERYC) to cover a £12.7m gap in its budget.

The increase of 4.99% for households would see the yearly Band D bill rise to £1,782.72, up by £84.70.

It doesn't include any precepts levied by Humberside Police, Humberside Fire and Rescue and parish and town councils.

Budget papers said the decision was made after a "challenging year" for local government finances.

According to the Local Democracy Reporting Service, the council will also use £11.6m from its reserves.

The authority's budget includes £8.3m savings and a £7.3m increase in income along with the proposed council tax hike.

'Exponential rises'

Last year, ERYC made a similar increase to council tax and issued a financial warning, blaming higher-than-expected inflation and rising demand for services.

Officials said: "Our current challenges are due to exponential rises in the costs of delivering social care and transport services to vulnerable adults and children.

“The growth in these costs is caused by a combination of high inflation and significant growth in both the numbers of people requiring these services and the complexity of their needs."

It added using reserves to plug spending gaps was a temporary solution and its reserves would run out if the situation continued without extra government funding.

East Riding Council said rising demand for social care was contributing to financial pressures

The authority also revealed it currently owes £404m in debts - equivalent to each resident owing £1,178 - which had gone towards "necessary" long-term investments for roads, housing and public buildings.

The Local Government Association estimated councils in England were facing a funding gap of £4bn over the next two years.

Earlier this month the government announced an £600m funding boost for councils in England, following pressure from local authorities and MPs.

The ERYC budget will go before full council on 21 February.

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