Newark Town Council members propose an increase of 11% on its share of next year’s council tax bills
Taxpayers may have to pay 11% more for services in the town next year – with councillors arguing that the plan is better than ‘going bust’ or axing events.
Newark Town Council members have drafted and discussed the budget and precepts for the next financial year 24/25 – but a final decision won’t be made until the full town council meeting next Wednesday (January 24).
The plans present an increase in its share of the council tax bill by 11%, which the council says amounts to less than a pound extra per month for 88% of the tax payers of Newark.
If approved, the tax increase will generate £133,700 a year – which is still said to be less than the value of the additional salary costs it expects to face.
Councillors said they has previously put bills up by an average of 1.9% and felt pressure to raise the numbers or risk following the same path as many councils across the country and risk financial issues.
Councillor Paul Taylor said: “To actually go to 11% is totally unfair on the people of Newark, I am quite willing to support an increase above 1.9%, but 11% in a cost of living crisis is totally unreasonable and I would suggest capping the increase to 5.9%.
“For people of Newark who can't afford heating, bills or to eat, this 11% increase is not insignificant, it’s a lot of money to them.”
Councillor Pamela Ball responded: “Is it better to increase by a pound a month or for us to go bust like a lot of councils?”
Residents living in Band A properties are currently paying £79.88 per year for Newark Town Council’s services. The rest of the bill goes to other authorities, such as the police and county council.
The suggested increase would see that rise to £88.57 per year for the portion going to the town council.
The highest rate on Band H properties would increase to £266.00 per annum instead of the current £239.63, with an increase of £2.19 per month.
Council clerk Matthew Gleadell said the increase was needed because of the additional expense caused by the cost of living crisis, inflation and national wage agreement increases.
In 2015, Newark Town Council took on responsibility for a significant number of public assets from Newark and Sherwood District Council under a devolution agreement.
The agreement included support funding and annual grants from the district council to help the town council adjust to its new responsibilities.
The housing growth forecasts – which would have delivered funding for the new assets – haven’t been met for many reasons and the annual financial support is to be received for the last time during the financial year 26/27.
This is contributing to the town council needing to find other ways to balance its budget – with money needing to be found over the next three financial years to avoid the need for significant cuts.
Finance and General Purposes Committee chairman Barbara Corrigan said: “The reality is that short/medium term that gap is the budget will need to be covered, in large by the precepts and short of thousands of pounds appearing overnight that means increases to the precepts.
“One way or another, council tax payers are going to be paying for it, it’s whether they will have to pay it to Newark and Sherwood District Council or Newark Town Council, fundamentally, the money is coming from the same group of people.”
It was proposed that the cost of town hall hire increases – which would see revenue raise from £8,000 to £15,000 – and additional bookings are expected too.
“If we were to say to people your options are – you pay an extra pound a month, or 67 pence a month if you’re band A, or we're not doing Newark Festival or other events? These are the decisions we have to make and my suggestion is more people would be happy to pay an extra pound a month and still see all of the things that we do for this town,” concluded Barbara Corrigan.
