Derby: Council tax rise of 4.99% approved by councillors

Derby City Council approved the council tax rise on Wednesday

Derby City Council has approved a 4.99% council tax rise.

Councillors voted through the proposal at a meeting at the Council House in Derby on Wednesday.

The council said there was a forecasted overspend of £2.4m by the end of the current financial year, down from £6.1m at a similar time last year.

Council leader, councillor Baggy Shanker, said the council was in a "difficult position" and the increase in council tax was "essential".

The 4.99% rise is the maximum it can be increased without a referendum.

As part of the tax increase, 2% is ringfenced to help fund adult social care.

The council chamber heard there are "real pressures" on both adult and children's social care, and that "demand for services continue to grow".

Derby City Council leader Baggy Shanker said the council rise was "essential" due to financial pressures

Opposition councillors raised concerns about the use of AI technology in order to save money and said there was "no plan B" if it did not work.

An amendment to the budget from the opposition Conservative group, which included the purchase of a new gully cleaner and funding for two staff members, passed.

An amendment from the Reform UK group to give residents a 2% council tax discount if the bill is paid on time was not passed.

Speaking to BBC Radio Derby, Mr Shanker said: "Derby is in a very difficult position funding-wise.

"The 4.99% agreed is absolutely essential... it is not something I'm particularly happy with, but given the amount of money we've lost from government grants, it's an unfortunate position we find ourselves in."