South Kesteven District Councillors voted to go ahead with a £5 increase in Council Tax – the highest amount possible for band D properties in 2023/24.

The authority's budget went before a scrutiny committee on Monday 9 January, before cabinet members voted on the move on Tuesday.

In the same meetings councillors also voted to increase dwelling rent by 7% and to use around half of a £3 million "budget stabilisation reserve".

Councillors warned of "significant" financial difficulties ahead including inflation, energy prices and employee pay.

During the meeting on Monday, Councillor Adam Stokes said: "The formation of the budget proposals have been driven by the corporate plan but within the context of a difficult financial climate that is well understood by all members."

He said a government settlement announced on December 19 was largely in line with expectations.

"Unfortunately, there was no specific allocation to deal with the rising energy and inflationary costs. And there is an expectation from government that councils will need to use their reserves to fund any shortfalls in balancing their budgets."

Councillors will utilise £1.534m of its £2.904m Budget Stabilisation Reserve to balance the books.

However, officers warned it would have to be a "one-off".

Under the government's rules, councils can apply a rise of 2.99% or £5 to Council Tax, depending which is higher.

The proposed rise will bring in an extra £256,000 to the Council.

Elsewhere, the Council continues to face reduced grants from government both in payments this year and real-terms losses due to no changes.

The Council also hopes to make £600,000 of savings and £200,000 extra through fees and charges.

In order to help Council residents meet increased rents, tenant support has increased by 10%.

During the discussions, councillors raised concerns around spending on leisure, costs around communications and climate change, bin collection fee changes, festival grants and the amount being spent on housing repairs and maintenance.

Councillors from the Deepings expressed anger that the budget did not include much to benefit their area.

They also hit out at the lateness of the government's settlement which meant the budget had a short turn-around time.

However, attempts by opposition members to change how money would be spent, including the creation of a leisure reserve, were voted down during the meeting.

Consultation on the budget will take place between January 16-30 with the final proposals set to return before councillors on 7 February 2023.

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