Council tax hike of 5% to fund social care

A public consultation will take place on the proposed increase

Lincolnshire's biggest council is set to increase its share of council tax bills by 5%.

Lincolnshire County Council takes around three quarters of the money households pay in council tax.

Conservative leader Martin Hill said the rise would help pay for social care and increases in the National Minimum Wage (NMW), which he described as "unexpected".

Labour leader Karen Lee said she would "reluctantly" support the increase.

The council is responsible for services including waste disposal, fire and rescue, social care and roads maintenance.

It is proposing to increase its share of the annual charge for Band D properties from £1,503 to £1,578 from April, adding £75 a year to the average bill.

District, city and parish councils also put a charge on bills, as does the Lincolnshire Police and Crime Commissioner.

Last April average Band D bills across Lincolnshire topped £2,000 for the first time.

Mr Hill said 2% of the 5% rise would be ring-fenced for social care services, where demand is increasing.

He said the government "won't give us any more money" to pay for a rise in the NMW in April, which will go up by £1.02 to £11.44.

"Of course it's very good news for those who will get more money but it has to be paid for," Mr Hill added.

The council's Labour leader and joint leader of the opposition, Ms Lee, said it was right that the NMW is rising "in these inflationary times" but said it was "unfair for the Government to expect councils to pay for it".

Reacting to the proposed 5% increase, she said: "Very reluctantly, from a personal perspective, I would support it as I don't think it can be avoided."

Demand for social care services is rising, the council leader said

The county council's budget for services in the current financial year is £604m of which £365.5m is funded from council tax bills. The remainder comes from business rates and Government grants.

The 5% increase would raise an extra £18m.

A public consultation has begun into the proposed rate rise.

A spokesperson for the Department for Levelling Up, Housing and Communities said the council had seen "an increase in core spending power of 11.9% compared to the previous year".

“In the Government’s funding proposals for next year (2024-25), we have proposed £690.8m for Lincolnshire County Council – a further increase in Core Spending Power of up to 7% in cash terms," the spokesperson said.

“This is part of an overall funding package worth over £64bn to support councils in England to deliver frontline services.

“Councils are ultimately responsible for managing their own budgets, however we stand ready to speak to any with concerns.”