Lichfield residents to pay 2.86 per cent more to district council in 2020/21

The £5 rise for Band D households – a 2.86 per cent hike – is the largest increase district councils are permitted to make this year by central Government without the proposals being put to a public referendum. It means Band D households will pay £180.07 to Lichfield District Council in 2020/21.

The district council is also planning to transfer £462,000 plus £1,171,000 of New Homes Bonus, into its general reserves as part of its budget for 2020/21, a full council meeting heard on Tuesday .

But Councillor Rob Strachan, cabinet member for finance and procurement, explained the move was necessary because of continued uncertainty on how much funding the local authority will receive in the years to come.

“We are in the eight year of austerity in local government finance”, he told Tuesday’s meeting. “We have seen our Revenue Support Grant (from central Government) fall by £3m annually to nil.

“Local authorities’ ability to raise revenue from council tax has been capped by Government for the fourth consecutive year and we have the shortest settlement ever in terms of financial planning.

“I’m not a great fan of local authorities making significant contributions to general reserves while increasing council tax. However I can see the necessity in doing so.

“I certainly hope we will be in more of a position as time passes to benefit people across the whole district.”

Councillor Iain Eadie, deputy leader and cabinet member for investment, economic growth and tourism, said: “We need to make sure we can have funding available to keep delivering services that we want going forward. We all know, in terms of planning for our day to day services, we must get to a point of self-sufficiency.”

The budget for 2020/21 and medium term financial strategy covering the years up to 2023/24 were approved by the full council following a named vote. In total 34 members voted in support, while 10 abstained.

Other authorities that receive portions of the council tax paid by householders are also planning increases this year.

Lichfield District residents in Band D properties will also pay £1,295.95 to Staffordshire County Council – a 3.95 per cent increase – as well as £225.09 towards police services – a 3.94 per cent rise – and £77.24 for fire and rescue services, which is 1.99 per cent more than last year.

Residents living in an area covered by a city, town or parish council will also pay a precept towards those services. The average increase in this precept is set to be 4.53 per cent – resulting in an average bill of £51.18 for a Band D property.