Council tax rise is agreed by borough
THE Cabinet at Charnwood Borough Council has approved plans to raise its share of council tax by less than 9p a week for a Band D property.
The proposed increase would see the annual charge for an average Band D property rise by £4.45 (3.6 per cent) to £131.08 from April 1, 2021.
Councillors are also proposing to increase the Loughborough Special Rate, the equivalent of a parish precept in villages and paid by residents of the town, to £77.98 a year (up 1.99 per cent).
The proposed final budget for 2021/22 is around £19 million. This includes making £1.5 million of proposed savings and generating income of around £600,000 largely through investments in commercial properties.
Income from council tax, business rates and Government grants is expected to be around £18 million and therefore there is still a gap of £1 million which the council will use reserves to cover.
The Covid-19 pandemic has added significant costs and reduced income from various areas including car parks, leisure centres and Loughborough Town Hall.
The impact is still expected to be felt in 2021/22, accounting for an expected £900,000 of lost income.
Councillor Tom Barkley, lead member for finance and property services, said: “Within the draft budget we are proposing to increase our share of the council tax for the 2021/22 financial year.
“We are also proposing to increase the Loughborough Special Rate.
“We do not propose this increase lightly, but due to the pandemic, our finances have also been significantly impacted. We are already making savings of £1.5 million and generated more income, however, to maintain frontline services we are proposing this increase in the Charnwood element of council tax.
“It’s worth remembering that the Charnwood element only equates to 10 per cent of a resident’s total council tax bill.
“We believe the proposal is a reasonable increase to ensure we can continue to deliver first-class services to both residents and local businesses.
“While the financial picture is tough, several long-planned investment projects are getting under way this year including the £2.6 million regeneration scheme at Bedford Square, Devonshire Square and Ward’s End in Loughborough; creating a visitor centre at the Outwoods and work will start later this year on a new cemetery for Loughborough.
“A commitment to delivering excellent services remains our top priority and even with these proposed increases, our council tax rates remain one of the lowest in the country.”
Charnwood Borough Council currently has the 23rd lowest council tax charge out of 188 district councils in the country.
Council tax pays for a range of services provided by Charnwood Borough Council, Leicestershire County Council, Leicestershire Police and Leicestershire Fire and Rescue and the parish council where you live (or Charnwood Borough Council for people in Loughborough).
For more information about the draft budget, visit the borough council website.