North East Derbyshire council tax set to increase by 2.99%

The tax rise was voted by a majority at a full council meeting

Council tax is set to increase by 2.99% in part of Derbyshire.

Councillors also agreed to put up rent for council tenants by 6% at a full council meeting at North East Derbyshire District Council.

The authority said the increase would help it balance its budget for the forthcoming financial year.

Leader Nigel Barker said: "Our finances are in a better shape than many of our neighbours but that does not mean 2024 will be plain sailing."

At the meeting on Monday, councillors voted by a majority to levy the council tax increase and rent, said the Local Democracy Reporting Service (LDRS).

The 6% rent rise means tenants will face an average weekly increase of £5.17, providing the council with £2m of extra revenue.

Funding boost

The Social Housing Regulator says rent increases of an amount equal to the Consumer Prices Index plus 1% are still permitted, which allows an increase of up to 7.7%.

The Labour-led authority said if council tax rates increased by 2.99%, then a current estimated 2024-25 budget shortfall of £303,000 would be reduced to £100,000.

The government has confirmed that the maximum possible increase available for Band D properties remained at 3% for district councils in 2024-25.

The council added the approved increase of 2.99% from 1 April worked out as £6.11 extra per month for a Band D property, and this would generate additional annual revenue of £293,007.

Council tax provides 40% of the authority's annual income.

Jayne Dethick, the council's director of finance and resources, said a share of a recently-announced £600m government funding handout for local authorities could also amount to about £92,000 extra for the council, which may be confirmed in February.