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FINANCIAL PLANS: Council tax could rise by 2.99% in Middlesbrough

FINANCIAL PLANS: Council tax could rise by 2.99% in Middlesbrough

Estimated council tax charges for 2022/23, Image: LDRS

Council tax could rise by 2.99% in Middlesbrough next year, according to recent financial plans.

People could see between £35 and £105 added to their 2022/23 annual bill due to the increase.

Each 1% rise in council tax produces around £600,000 for the council, which could mean nearly £1.8m extra income for the local authority next year.

The council faces spending pressures due to a number of factors including covid-19 and children’s services.

The potential increase in council tax has been revealed as part of the review of the Medium Term Financial Plan.

A council tax increase of 1.99% was previously forecasted for next year, however, that has now been raised to 2.99%.  As a result, there should be no cuts to frontline services.

Of the 2.99% increase, 1% is the adult social care precept, which local authorities are allowed to charge to help fund care.

Speaking at the Executive meeting on Tuesday, November 9, Mayor Andy Preston said that this review was not a budget and was a forecast only.

He added: “Bigger council tax rises would be possible, which would boost our position and we could spend more money and do great stuff but would obviously hit residents in the pocket.

“Smaller rises would be possible too, which would help residents’ pockets but would undoubtedly lead to some service cuts.”

He added that he thought the council was financially in ‘decent shape’.

Under the new proposals, those living in Band H homes, the most expensive properties, will pay around £105.08 more in 2022/23 than in 2021/22.

On the other end of the scale, those living in Band A homes will see an annual increase of around £35.03 to £1,206.44, while for people in Band D Homes, the cost will rise by approximately £52.54 to £1,809.65 per year.

These figures do not include fire and police precepts or any extra costs for those with parish councils.

The report will be presented to the full council on Wednesday, November 24.

Following this, there will be a period of consultation between November 25, 2021, and January 23, 2022, which will be open to the general public.

The findings of the consultation will then be reported to the executive on
February 14, 2022, and to the full council on February 23, 2022.

The Government’s Spending Review in October gave an indication of the level of funding councils could expect but it did not state how much each local authority would receive.

The allocation amount for Middlesbrough Council is expected to be announced as part of the Local Government Finance Settlement – it is thought that this will be provisionally published in December 2021 and confirmed in February 2022.

Middlesbrough Council has been contacted for comment.

 

Words: Emily Craigie, Local Democracy Reporter


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