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East Lindsey District Council sets balanced budget that supports communities and economic growth

Posted March 6, 2025

The Hub, Horncastle

The setting of the budget continues to be challenging. This is due to unprecedented changes in funding levels from Central Government, the impact of the special levy to support the vital work of Internal Drainage Boards and continued changes in resident, customer, and business needs.

Despite this the Council is delivering projects through its own budgets and external grant funding. These include the Investment Fund, the Towns Fund, Cultural Development Fund and Long Term Towns Funding aiming at supporting our places and to support communities to thrive in what is a challenging economic environment.

At Full Council on Wednesday 5 March, Councillors approved a Council Tax rise of £4.95 for a Band D property which equates to £171.54 per year. This represents an increase of 9.5p per week to deliver district council services such as refuse collection, planning, housing, environmental health and much more.

The vast majority of properties in East Lindsey are band A, B and C so will see increases lower than this.

Lincolnshire County Council, the Police and Crime Commissioner for Lincolnshire and parish councils also set their own council tax rates which form part of the annual bill.

From April 2025, East Lindsey District Council will increase the maximum amount of Council Tax Support for eligible low or no-income families and households. This will rise from 75 per cent to 85 per cent, giving more support to people struggling to pay their annual Council Tax.

 A significant element of the budget is the Internal Drainage Board Levy, which the Council is required to pay. The levy is mainly paid for from funds collected through Council Tax, money which could be invested in services.

This year, the special levy has increased to £5.4m in East Lindsey, an increase of £80,000 from 2024/25. Since 2021/22 the levy has increased by £1.6m - representing a 42 per cent increase.

East Lindsey District Council is a founding member of the Special Interest Group of 40 councils working together to lobby Government for a fairer funding mechanism that takes the special levy out of the council tax requirement. As result of that lobbying, the Government has increased the funding allocated from £3m to £5m for councils impacted by the levy. The Council is waiting to find out its allocation.

Cllr Thomas Kemp, Portfolio Holder for Finance at East Lindsey District Council, said: "Despite the challenges of the past few years, we continue to work to develop new opportunities, deliver services in different ways to be efficient as well as develop new income streams to support the Council's revenue budget whilst investing significantly through our Investment Fund and external Grant funding in our place.

"Representation to government continues to be made on Internal Drainage Board Special Levies due to the substantial loss of income to the Council and the impact this has on our services."  

 "The Council has also been impacted by inflationary pressures which have been seen across all areas of the council's budget, particularly for pay and contracts."

"Budgets for the coming years are forecast to be difficult that is why it is important for us as a Council to continue making efficiencies where we can, reduce running costs and help deliver services more efficiently. Increasing capital investment will also help generate new income for the council to provide services."

 Key priorities for the Executive Board next year include promoting projects which aim to invest in our towns and villages, placing residents and communities at the centre of everything we do and achieve as much as is possible through greater collaboration as part of the South & East Lincolnshire Councils Partnership.

Some of these key projects to be developed during 2025/26 are on the following themes:

  • Market towns and rural areas
  • Driving and supporting Economic Growth
  • Supporting the delivery of affordable housing
  • Supporting the vulnerable
  • Supporting healthy living
  • Decarbonisation and continued investment in green initiatives
  • Invest to Save