Council claims it is being 'penalised for being successful'
North Kesteven District Council says good financial management means it is being left worse off by the government.
The authority’s leader says he would like to tell ministers “please do better” after receiving their financial settlement for 2025/26.
Although councils across the country will receive four per cent more funding from April, North Kesteven’s spending power will stand still, despite an expected rise in council tax.
The Rural Services Delivery Grant, which previously benefited many parts of Lincolnshire, has been withdrawn.
It has been replaced with a Recovery Grant targeting urban areas with high levels of deprivation.
The council’s executive committee discussed how their financial outlook was likely to become more difficult over the next year.
Councillor Ian Carrington (Con) said: “We are fortunately in a good position due to historical good management compared to other councils.
“It feels like the government is penalising success – if you’ve run a tight ship, you get penalised compared to the rest of the pack.”
Council leader Coun Richard Wright (Con) said: “It’s hard to explain to council tax payers why they’re seeing an increase.
“It’s a really bad settlement, particularly since we’ve lost the Rural Services Grant.
“It seems like the better we do, the worse we’re going to be rewarded by central government.
“The only way we’re in this position to have a balanced budget is because of prudent financial management.
“I want to send the settlement back and say ‘please do better’ but unfortunately I can’t do that.
“More demands on our services are appearing month after month after month and it won’t get cheaper to run the authority, only more expensive.”
Russell Stone, the authority’s Deputy Chief Executive, said: “It feels at times those who do the right things don’t necessarily get the benefits.”
The executive committee has proposed that council tax is raised by 2.61 per cent (equivalent to an extra £4.95 for Band D).
This will be decided by full council at a later date.
The Ministry of Housing, Communities and Local Government has been contacted for comment.