Mayor - ‘Now is not the time for a big increase’

How much money will you have left in your back pocket after potential Council Tax rise in 2021?

At their monthly meeting last week, councillors heard that many households were struggling with the financial impact of Covid.

Mayor Coun Fiona Martin told the meeting ‘now is not the right time for a big increase.’

Council Tax is made up of four elements - county, district, police and town and parish councils.

There are fears that in including all those elements, tax bills could increase by around £100 for an average Band D property in 2021 - the last thing hard-up families need.

The town council hopes to keep its precept - the amount it needs to cover all its costs - at the same figure as this year, £166,000.

That means owners of an average Band ‘D ‘ property would pay around £72 to cover the town council share of bills.

However, that is the smallest element with county, district and police precepts set much higher.

All three are expected to impose significant increases.

The town council’s plans are on hold until confirmation of how many households will actually pay council tax next year.

While there are hundreds of new properties that could negate the need for an increase, some households are paying a reduced figure because of the impact of Covid-19.

Various grants and subsidies are available and until the exact figures are known, the town council cannot set its precept.

If the council opts for the same precept figure, it will leave a shortfall of £24,972 in its proposed budget.

Councillors had considered drawing that amount from reserves at the bank, but agreed that would be ‘too big a hit at one go.’

Instead, it is thought they could favour a small precept increase. The increase in the last four years has varied between two per cent and 21 per cent.

There are concerns an increase will also be needed to cover the cost of the 14 land and building assets transferred from district council to town council ownership.

Speaking at last week’s town council meeting, Coun Alan Lockwood urged caution. He said: “It’s been a tough year for our town. We don’t need to load people with a large increase.

“We need to set a realistic budget and if there is an increase, it has to be the minimal amount. We need to give residents value for money.

Coun Martin agreed, adding: “Now is not the right time for a big increase.”

Clerk Amanda Bushell confirmed the assets transferred from ELDC would generate £3,140 in rental income.