'No decision' on Nottinghamshire Council tax plans but authorities likely to raise bills ‘to some degree’

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No decision has been made on whether Nottinghamshire Council will raise its council tax bills next year.

This is despite councils being told by the Government they can raise bills by more next year than in previous years as they look to balance books and tackle soaring inflation.

Chancellor Jeremy Hunt told local authorities such as Nottinghamshire Council their maximum council tax rise would be 5 per cent in April.

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This includes 3 per cent for standard services and 2 per cent for the ring-fenced adult social care precept – the threshold was 2 per cent and 1 per cent respectively.

Coun Richard Jackson,. Nottinghamshire Council portfolio holder for finance.Coun Richard Jackson,. Nottinghamshire Council portfolio holder for finance.
Coun Richard Jackson,. Nottinghamshire Council portfolio holder for finance.

If the Conservative-led council opted for the full 5 per cent rise, it could mean an £82.20 annual increase overall for its portion of the bill on a ‘Band D’ home.

District and borough councils would also have the power to raise their bills by 3 per cent.

Parish councils, the police and crime commissioner and Nottinghamshire Fire Authority also have the power to increase precepts on households.

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But Nottinghamshire Council says no decisions on whether to take its full amount have been made as the authority awaits Whitehall guidance on grant support, due just before Christmas.

Coun Richard Jackson, council portfolio holder for finance, said the authority’s total budget pressure for 2023/24 is £41 million.

Actions to claw back cash include reducing in-year spending and exploring service “transformation” to cut demand in areas like social care and children’s support.

At present, the authority is forecasting to be overspent by less than 1 per cent on the 2022/23 budget approved in February, but financial pressure is being fuelled by a 41-year high inflation rate of 11 per cent, causing gaps that need to be filled in the budget for next year.

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When quizzed about it during the latest full council meeting, Coun Jackson warned most councils are likely to propose council tax increases “to some degree”.

He said: “The autumn statement gave a pretty clear steer for what councils will be allowed to do.

“We haven’t made any decisions yet and nor will we until we know the substance of our local government settlement.

“I would be surprised if there are any councils locally and probably nationally that aren’t going to increase council tax to some degree.”