Residents in Gedling face a council tax bill increase of the maximum amount allowed from April.
Labour-run Gedling Borough Council’s cabinet will meet on Thursday (February 16) to discuss the plans, with all councillors to be recommended to approve them next month.
The rise equates to a three per cent increase – the most the authority is allowed to take without holding a public referendum – and would hit Band D homes with a £5.34 annual rise for the council’s portion of the bill.
For residents in Band A homes, this equates to £3.56 more per year, with £4.15 and £4.75 increases for Band B and C homes respectively.
If approved by all councillors on March 2, the three per cent increase would affect all homes in the borough and come into effect from April 1.
It’s as the authority sets out its medium-term financial plan (MTFP) for between now and 2027/28.
It says the rise comes amid “major and unprecedented economic uncertainty” caused by the pandemic and the war in Ukraine.
Soaring inflation, rising energy prices and increased pressure from staff pay left a gap of £1.826m in the authority’s general fund which needs to be filled in 2023/24.
The council said: “There has been a significant increase in inflationary pressures being faced by the council, resulting in a substantial increase in costs across the medium term.
“[This includes] the aftermath of the Covid-19 pandemic, post-Brexit supply and labour shortages, [and] the war in Ukraine and subsequent western sanctions.”
The authority previously said this was compounded by a national £1,925 pay award for all employees hitting budgets by nearly £1m in the current financial year.
A further five per cent pay increase is expected in the 2023/24 financial year, affecting budgets by a further £774,900 from April.
Inflationary pressures on its utility contracts are also expected to cost about £728,000, the authority adds.
Some cash will also be made back by higher-than-expected Government grant support, though the council says this “does not cover the inflationary demand being experienced”.
If Gedling’s proposals are approved, it means the total increase for Band D homes in the borough would be £104.85 from April when also including planned tax hikes at the county council, the police and the fire service.
For Band A homes in Gedling, the total increase is £71.57. Band B and Band C homes in the borough would then face total increases of £82.65 and £93.76 respectively with all four tax hikes factored in.
It comes after Nottinghamshire County Council and Caroline Henry (Con), the police and crime commissioner, both had their tax plans approved last week.
• Average Nottinghamshire homes see council tax of almost £80 from April
The Tory-run county council greenlit its 4.84 per cent tax hike on Thursday (February 9), affecting Band D homes by a £79.57 increase for the council’s portion of bills.
This is the largest of the four tax hikes and will affect Band A homes with a £53.05 rise from April.
Band B and C homes will pay the county council £61.88 and £70.73 more each respectively.
Mrs Henry’s separate increase of £14.94 on Band D homes was approved on Tuesday (February 7), affecting Band A houses with a further £9.94 rise.
Band B homes will be affected by an additional £11.62 increase, with £13.28 more to be paid by Band C homes to fund police budgets.
And the Nottinghamshire Fire Authority, which determines the budget of Nottinghamshire Fire and Rescue Service, is also proposing a £5 increase for every home in the county, regardless of their house banding.
This is due to be discussed by the authority on Friday, February 24.
