East Riding Council Proposes 3.99% Council tax Rise

A typical East Riding household is set for a council tax bill of more than £1,616 if councillors back proposed hikes for the coming financial year.

East Riding Council’s draft budget has proposed setting the yearly levy on Band D properties at £1,616.79 for the 2022-23 financial year.

The draft budget proposes hiking council tax by 3.99 per cent which includes a general increase of 1.99 per cent and 2 per cent for adult social care.

It comes as the council’s cabinet backed sending the proposed hike for final approval when councillors debate it on Wednesday, February 23.

The draft budget stated the hike aimed to raise £195.47m for the 2022-23 budget which proposes spending a total of £324.902m.

It also stated council tax income was projected to rise by £13.076m compared to this financial year if the hike is approved and due to less households needing levy relief.

A 3.99 per cent increase would be the maximum the council could hike rates by without triggering a local referendum.

Council Head of Finance Julian Neilson told the Overview Management and Scrutiny Committee last week coronavirus, inflation and rising costs for some services could mean a £9.9m deficit by 2025.

He added while the draft budget would balance the books in 2022-23, cost cutting some £33m and council tax hikes of 3 per cent a year would be needed going forward.

The General Fund Revenue Budget sets out the council’s planned spending on its services including schools, its libraries and leisure centres and bin collections.

It also includes spending on ‘special expenses’, services and facilities which are provided by town and parish councils in the East Riding.

East Riding special expenses cover parks and open spaces, closed churchyards, footway lighting in Hessle, CCTV in Bridlington, Beverley Memorial Hall and Snaith and District Community Sports Association.

The draft budget stated rising costs to the council included £749,000 alone due to the East Riding’s ageing population due to expected increases in demand for social care services.

It also includes plans to spend £3.996m on the Your Life, Your Way programme, designed to gear social care towards earlier intervention to reduce reliance on services as people age.

Increasing the minimum wage for carers to £10.50, £1 above the national rise to £9.50, is expected to cost £4.220m.

Cabinet members approved plans for the wage hikes late last year as part of efforts to stem an exodus of staff from the care sector to better paying jobs elsewhere.

The 3.99 per cent increase does not include precepts, levies included in council tax bills, for Humberside Fire and Rescue, Humberside Police and town and parish councils.

The fire service is set to decide on its precept and budget on Friday, February 11 after levying £88.35 on Band D households this financial year.

The Police and Crime Commissioner (PCC) can increase the force’s precept by up to £10 before triggering a referendum and its proposed hike is due by Wednesday, February 23.

The force levied £243.21 on Band D households this financial year.

Proposed East Riding council tax hikes by household bands:

•     Band A: yearly charge- £1,077.86, yearly increase- £41.35, monthly increase- £3.45.
•     Band B: yearly charge- £1,257.50, yearly increase- £48.24, monthly increase- £4.02
•     Band C: yearly charge- £1,437.15, yearly increase- £55.14, monthly increase- £4.60.
•     Band D: yearly charge- £1,616.79, yearly increase- £62.03, monthly increase- £5.17.
•     Band E: yearly charge- £1,976.08, yearly increase- £75.82, monthly increase- £6.32.
•     Band F: yearly charge- £2,335.36, yearly increase- £89.60, monthly increase- £7.47.
•     Band G: yearly charge- £2,694.65, yearly increase- £103.38, monthly increase- £8.62.
•     Band H: yearly charge- £3,233.58, yearly increase- £124.06, monthly increase- £10.34.