South Holland District Council sets balanced budget that supports economic growth

The setting of the budget has been one of the most challenging. This is due to unprecedented changes in funding levels from Central Government, the impact of the special levy to support the vital work of Internal Drainage Boards and continued changes in resident, customer, and business needs.

Despite these challenges. The Council is supporting the implementation of a new Business Improvement District for the Town, the deployment of Long-Term Towns Funding and the delivery of the hugely significant South Holland Health and Well-Being Hub funded mainly through grants. 

The £38.6m Capital Programme is one of the most significant seen for many years and hugely positive for the District.

At Full Council on Thursday 27 February, Councillors approved a Council Tax rise of £7.11 for a Band D property which equates to £208.53 per year. This represents an increase of 14p per week or 2p per day to deliver district council services such as refuse collection, planning, housing, environmental health and much more. The vast majority of properties in South Holland are band A, B and C so will see increases lower than this.

For those who also pay the Spalding Special Expenses in addition to Council Tax, this has been set at £23.13 for a Band D property, a decrease of £2.70 from 2024/25.

Lincolnshire County Council, the Police and Crime Commissioner for Lincolnshire and parish councils also set their own council tax rates which form part of the annual bill.

From April 2025, South Holland District Council will increase the maximum amount of Council Tax Support for eligible low or no-income families and households. This will rise from 75 per cent to 85 per cent, giving more support to people struggling to pay their annual council tax.

 A significant element of the budget is the Internal Drainage Board Levy, which the Council is required to pay. The levy is mainly paid for from funds collected through Council Tax, money which could be invested in services.

This year, the special levy has increased to £3.57m in South Holland, an increase of £158,000 from 2024/25. Since 2021/22 the levy has increased by  £947,000 - representing a 36 per cent increase.

South Holland District Council is a founding member of the Special Interest Group of 40 councils working together to lobby Government for a fairer funding mechanism that takes the special levy out of the council tax requirement. As result of that lobbying, the Government has increased the funding allocated from £3m to £5m for councils impacted by the levy. The council is waiting to find out its allocation.

Cllr Paul Redgate, Portfolio Holder for Finance at South Holland District Council, said: "Despite the challenges of the past few years, we continue to work to develop new opportunities, deliver services in different ways to be efficient as well as develop new income streams to support the Council's revenue budget.

"Representations to government continues to be made on Internal Drainage Board Special Levies due to the substantial loss of income to the Council and the impact this has on services.   

"Another key component of the Council budget is its share of business rates income which has seen changes following the settlement in December. In addition, inflationary pressures have been seen across all areas of the council's budget, particularly pay, contracts, utilities, and fuel.

"Budgets for the coming years are forecast to be even more challenging. That is why it is important for us as a Council to continue making efficiencies where we can, reduce running costs and help deliver services more efficiently. Increasing capital investment will also help generate new income for the council to provide services. "

 Key priorities for the Cabinet next year include promoting projects which aim to drive commercial opportunities, placing residents and communities at the centre of everything we do and achieve as much as is possible through greater collaboration through the South & East Lincolnshire Councils Partnership whilst we consider future changes.

• Some of these key projects to be developed during 2025/26 include:
• Investment in infrastructure and facilities through government funding
• Investing in our town and rural centres working with partners
• Empowering communities in the way services are provided
• Addressing deprivation
• Tackling Climate Change through the Green Homes Initiative
• Supporting our tenants and improving our housing stock