PR 1707 2 December 2004
North Lincolnshire Council will have some tough decisions to make in the months ahead following today’s poor financial settlement announcement from the government.
Next year (2005/6), the council will receive a grant of £124.781m. This represents just 4.8 per cent increase on last year’s settlement. It is less than last year’s increase of 5.8 per cent and is well below the national average increase of 6.2 per cent.
Early indications show that the council will need to spend around £185m. This being the case, the council will need to find around £5m savings in order to keep within the Government’s expectation of a national average increase of less than five per cent.
Cllr Liz Redfern, Acting Leader of North Lincolnshire Council, said:
"This year’s financial settlement is poor. I am very disappointed. We will receive one of the lowest grants in the country for a unitary council. We are an excellent council and I feel we are being penalised for this.
"We have fallen well short of the national average with an increase less than last year. If we received the average grant this would mean an extra £1.6m. This equates to £34 for an average Band D tax payer.
"It is unfair that we are expected to continue providing excellent services without the money to do so. We will have to find huge savings and this will put an enormous strain on the council.
"It is too early at this stage to say what the affect on council tax levels will be. This will be decided in February 2005. But one thing is for sure; we have our work cut out over the coming weeks and months and will have to make some tough decisions. Cabinet members, the two deputy chief executives and heads of services have been meeting and are looking at every area of spending. And where possible, we will make savings. But it is not going to be easy."
Spokeswoman for North Lincolnshire Council said:
"Today’s financial settlement will require a lot of detailed work in the coming months ahead to deliver a balanced budget and an acceptable increase in council tax for the people of North Lincolnshire."
Notes for Editors:
Last year’s settlement for North Lincolnshire was £117.9m. Council tax for an average Band D property is currently £1019.61. This is for North Lincolnshire Council services.
For further information please contact: Sarah Williamson on 01724 296353, sarah.williamson@northlincs.gov.uk.