Faced with "difficult times for local government," two more district councils in Lincolnshire are considering 3% increases in their tax rates from April.

South Kesteven District Council and South Holland District Council are looking at potential rises of 3% and 3.09%, respectively.

If these proposed increases are approved, Band D property owners will face additional costs. In South Kesteven, the increase would be £5.31, while in South Holland, it would amount to £6.03.

Reports from SKDC indicate that opting for a smaller tax increase would necessitate budget cuts, alongside enhanced savings and efficiencies, to compensate for revenue shortfalls.

This news comes alongside Lincolnshire County Council's plans for a 5% increase, and City of Lincoln Council's indication of a 2.92% rise in their respective tax rates due to "unprecedented financial challenges," such as escalating costs and high demand for key services.

During South Kesteven District Council's (SKDC) Joint Overview & Scrutiny Committee meeting, Deputy Leader Ashley Baxter (Independent) underscored the severity of the situation. He said: "We are in difficult times for local government. Lots of councils are going pop left, right, and centre. There are some that are very close to the edge and we need to be very mindful of that."

He specifically mentioned the financial struggles of Birmingham City Council and Nottingham City Council, noting their section 114 notices, which signal a state of effective bankruptcy in recent months.

Councillor Baxter further noted: "District councils are under pressure and have been under pressure since 2010."

In December, Lincolnshire council leaders expressed disappointment with the government's financial settlement, offering less than a 5% increase in spending power, which they deem insufficient against rising operating costs.

South Holland District Council Leader Nick Worth (Conservative) described the situation as "extremely disappointing", noting that it would lead to the district being financially worse off in 2024, a concern especially pertinent in light of the already challenging financial times.

He said: "The provisional Local Government Statement is extremely disappointing for South Holland and if it goes through, means we will be worse off next year to fund services in these already challenging financial times. This means the local services our communities rely on every day are more vulnerable.

"As a district council, we provide vital services like planning, leisure, waste and recycling collection. The council is working hard to reduce costs where possible and to ensure service provision that meets the needs of residents. In addition to these pressures, we also have internal drainage boards costs which are increasing year on year.

"The provisional statement means a lower core spending power increase on average next year compared to other councils, which is something the Government should address in the final settlement.

"This could leave us with no choice but to increase council tax bills which the rate is is automatically capped to bring in desperately-needed funding at a time when we are acutely aware of the burden this will place on some households in a year of economic uncertainty and increased costs."