East Lindsey District councillors have voted today (Tuesday) to back a proposal to increase Council Tax bills by 1.95% this year.
The increase - which was recommended by the council’s Executive Board - will add 20p a month for people living in a Band D Property.
It comes after the County Council and Police Authority look set to impose a similar rise while some town and parish councils are also looking to put their precept up.
District councillors were told the amount of funding the authority receives from Central Government had been reduced by £1.9m (32%).
That means the council will have to make significant savings in its budget for 2015/16 - in addition to the savings already made in recent years.
The council stresses East Lindsey residents will still pay the lowest rate of District Council Tax in Lincolnshire - if the budget is approved.
The majority of households in East Lindsey are Band B so the increase for most would be 15 pence per month, based on the proposed budget.
The council’s Portfolio holder for Finance, Councillor John Upsall, said: “Setting this year’s draft budget has once again been an extremely hard task for us, especially in light of further significant reduction in funding for local services.
“Tough budgetary decisions have had to be made in order to ensure that the Council can balance its books, as is required by law, and the Council continues to do all it can to deliver the required savings whilst protecting services to local people.
“That being said, using our capital resources, our proposed budget will see continued investment in areas such as affordable housing, flood alleviation and economic development – creating new opportunities and jobs for our residents.”
Compass Point Business Services is on track to provide in excess of £19m of savings over 10 years and establishing Magna Vitae Trust for Leisure and Culture is also set to make significant savings in coming years.
Local people and businesses can submit views on the budget by visiting www.e-lindsey.gov.uk/budgetconsultation before 5pm on January 30.
The District Council’s proportion of the current Council Tax bill is around 8%, with the remainder divided between Lincolnshire County Council (75%), Lincolnshire Police (14%) and some Town and Parish Councils (Ave 3%)