£5 a year increase in council tax for Hinckley and Bosworth

Published Tuesday, 12 January 2016

Households in Hinckley and Bosworth will be asked to pay an average of £5 per household per year more for borough council services, if councillors agree a draft budget at a meeting in February.

Provided that the full Council agrees at its meeting on Thursday 18 February, the increase for a Band D taxpayer living in the Borough will be 4.5 per cent or £5 for the coming financial year. This will take the average Band D tax to £117.09 a year, equivalent to just £2.25 per household per week; an increase of less than 10p per week.

The budget has been drafted following a consultation with residents late last year in which 75% of people who took part indicated that they would support in a referendum an increase of up to £16 per year for a Band D property. At the time it was thought that a referendum would be needed for any increase of 2% or above, but changes announced by the government in December means that councils which charge the least* for their services can now increase their council tax by up to £5 without a referendum. As the borough council is within the lowest charging quarter of local authorities out of the 201 district authorities in England, it can make the change without incurring the expense of a referendum.

Councillor Leader Mike Hall, said:

Everyone will, I am sure, be pleased to know that these proposals do not require this council to hold a referendum on a council tax increase. With the increased funding from government, including the continuation of new homes bonus, increased business rates retention, further efficiency savings within the council, increases in the use of our charged services, and a small increase in council tax we will be able to set a balanced budget. We will also be seeking to retain the universal garden waste recycling service, for at least the year 2016/17, without the need to make a charge for its collection, and without the need to fund the service from Council reserves

The draft budget will be scrutinised by councillors this month and a final decision about the council tax figure to be agreed by full Council on 18 February.

* This provision relates to those Councils which charge levels of council tax in the lowest quartile (i.e. the lowest 25%) in the country. Hinckley and Bosworth Borough Council is currently the eighth lowest out of 201 Districts in England.

Last updated: 12/01/2016 14:30