Smaller increase in Newark Town Council’s share of council tax, proposed at 5%, as result of “sound accounting”

A council will not need to raise its share of household tax as much as last year thanks to “sound accounting”.

Authorities up and down the country are currently in the process of reviewing their council tax precepts ahead the new financial year.

In our area, council tax is split between parish and town councils, Newark and Sherwood District Council, Nottinghamshire County Council, the Office of the Police and Crime Commissioner, and Nottinghamshire Fire and Rescue Service.

Newark Town Council’s finance and general purposes committee met this week to discuss recommendations to raise its own share of tax by 5% — less than half of last year’s 11% rise.

If approved by full council, the 5% increase could see an additional £70,849 per year added to the council’s funds.

However, this represents an increase of just 55p per month for Band D properties, or 36p per month for Band A properties.

In fact, 99.99% of households in Newark would see less than a £1 rise per month — only band H properties will see a rise above this.

The recommendation comes as part of the proposed 25/26 town budget, with current year-end-forecasts predicting that there will be an underspend of just over £270,000 in the current financial year.

The Town Clerk, Mathew Gleadell, explained that a number of factors had contributed to this, including the addition of hospitality events in the Town Hall which had generated additional income, restructuring of the council, and asking staff to make savings wherever possible.

Despite the positive outlook and current savings, members were encouraged to take a long term view in light of future financial pressures.

In the coming years, funding through a devolution grant is expected to run out, leaving the council with a projected £600,000 deficit in the year 27/28 if nothing is done — this is why the tax share was raised by a record 11% last year.

Committee chairman, Barbara Corrigan, said the recommended 5% increase struck “the right balance”, and would help the council to build up its “war chest”.

“Some may ask why we are increasing council tax?” she said.

“But as responsible, budgeting councillors, we must look further ahead than the current year.

“Last year set up a really good base, and with this year, hopefully we won’t need to raise it as much in the future as a result.”

Neil Ross, added: “We made some difficult decisions last year, but that has put us in a better position this year.

“Certain changes were made to help balance the books — it is up to us to build on that success and make sure that all parts of the community feel like they have a stake in this.

“[Introducing hospitality] shows that we are open for business. It shows this town is fighting back and that it is worth fighting for.

“No matter which political party we are from, it’s all about the town.”

Mathew Skinner praised the budget, saying it was the “result of sound accounting”, but questioned if it went far enough.

He asked if they could be “a little more ambitious” as the proposed budget offered very little that was new, and was more of a continuation to last year’s cost saving efforts.

The recommended increase of 5% will now be put forward to a meeting of full council for decision, on Wednesday, January 29.