A 4.99 per cent hike in East Riding council tax has been approved after the authority’s leader warned it would face a £36m budget deficit without it.
East Riding councillors have approved the increase which equates to a monthly increase of £6.72 on a Band D home.
Conservative Council Leader Cllr Jonathan Owen said it came after an exceptional year on high inflation which has driven up costs and threatens a £36m budget black hole by 2027.
But Liberal Democrat opposition leader Cllr David Nolan said it would put more pressure on families facing the cost of living crisis, proposing a lower hike of 3.49 per cent.
It comes as councillors met to vote on the authority’s budget proposals, setting out how much will be spent on local services and capital building programmes in the coming year.
The 4.99 per cent hike includes 2.99 per cent for spending on its services and a further 1.99 per cent for adult social care.
It is the maximum that councils are allowed to increase levies by without holding a referendum.
The increases exclude hikes to the precepts for Humberside Police, Humberside Fire and Rescue Service and for town and parish councils.
Councillors also approved a 5 per cent increase in rents for its housing tenants, below the 7 per cent recommended by the Government.
Cllr Owen said the proposed hike came as inflation had already forced up the cost of delivering services by £40m or 12.2 per cent.
He added that inflation came amid political unrest nationally with several Government changes and the huge uncertainty and disruption caused by the war in Ukraine.
The leader said:
“The Government has provided additional funding but has made it clear that councils should rely on council tax increases and reserves to manage these increases.
“This increase to council tax will raise a much-needed £9.9m.
“The impact on a Band A home will be an extra £1.03p-a-week.
“We wish to maintain services and without this increase the cost of those could only be met by further cuts.
“Wherever the Liberal Democrats are in control they’ve proposed 4.99 per cent increases but here where they aren’t they’ve put forward 3.49 per cent.”
Cllr Nolan said the hike could push more families into council tax arrears, which is why the opposition proposed a smaller increase alongside other budget proposals.
The Liberal Democrat said:
“Council tax is unfair because it’s not related to people’s ability to pay, it’s related to property.
“We’ve got a cost of living crisis and families are hard-pressed, when precepts are included Band D homes will be looking at spending around £100 more on council tax.
“The non-payment of council tax is a criminal offence, but when families are struggling to cover the costs of heating, eating and paying council tax, they will chose heating and eating first.
“Ideally we’d like to not increase council tax but we recognise the need to support services.”
Council tax increases in full (excluding precepts):
- Band A: total 2023-4 charge- £1,131.65, monthly increase- £4.48, yearly increase- £53.79.
- Band B: total 2023-4 charge- £1,320.25, monthly increase- £5.23, yearly increase- £62.75.
- Band C: total 2023-4 charge- £1508.96, monthly increase- £5.98, yearly increase- £71.72.
- Band D: total 2023-4 charge- £1,697.47, monthly increase- £6.72, yearly increase- £80.68.
- Band E: total 2023-4 charge- £2,074.69, monthly increase- £8.22, yearly increase- £.1.89.
- Band F: total 2023-4 charge- £2,451.90, monthly increase- £9.71, yearly increase- £116.54.
- Band G: total 2023-4 charge- £2,829.12, monthly increase- £11.21 yearly increase- £134.47.
- Band H: total 2023-4 charge- £3,394.54 monthly increase- £13.45, yearly increase- £161.36.
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