Lancaster council tax rise expected but calls for more budget details including community and Morecambe festival funds

Lancaster Town Hall
-Credit:Robbie MacDonald LDRS


Council tax for households across the Lancaster and Morecambe district look set to rise by 2.99 per cent, under Lancaster City Council's new budget plans.

The Band D tax will rise from £256.63 to £264.30, if formally agreed by councillors later this month.

Car park charges for most city council-owned sites and Salt Ayre leisure centre admission fees are expected to be frozen, councillors have been told. Some charges at Happymount Park or Williamson Park may rise. Details will be formally confirmed at the annual budget meeting later this month.

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Leading councillors outlined local plans and government funding at the latest full council meeting and also a media briefing. Topics included business rates, energy schemes and funds for festivals, community and arts organisations.

A Lancaster City Council meeting
A Lancaster City Council meeting at Morecambe -Credit:Robbie MacDonald LDRS

At the full council, Green Coun Tim Hamilton-Cox, the cabinet finance member, said provisional government funding for the next 12 months was around what was expected. But the council's forecasting was cautious, which was 'just as well'.

Overall, there has been a 2.6 per cent increase in the council's total tax base in recent years. This is all the assets, income and economic activity that can be taxed by the city council.

He said: "Business rates have been above what was originally expected in recent years. That helps significantly in balancing the budget and closes the funding gap without using our reserves."

Tim Hamilton-Cox of Lancaster City Council
Tim Hamilton-Cox of Lancaster City Council -Credit:Lancaster City Council

Factors include rates collected from electricity hubs at Heysham, linked to wind turbines at sea. This is linked to the Green Energy Disregard, an incentive for councils to keep more tax linked to renewable energy infrastructure.

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However, the city council still faces future funding gaps of millions of pounds between income and expenditure in coming years, according to its forecasts. This is called a structural deficit.

Government changes

Regarding new government funding this year, Coun Hamilton-Cox told the council: "District councils in shire counties are currently bottom of the distribution levels. I understand why the government has given more to local authorities which have suffered, because metropolitan areas have lost more funding. But the Lancaster district has a particular situation. Index of poverty figures, used for decisions, show parts of this district are amongst the poorest in the country. So I think there is a lack of discrimination between shire districts and it needs looking at.

"I also understand why councils with social care responsibilities have been funded differently by the government. That's part of the mix which has seen this district effected. But there are some compensations for us too including with council tax, business rates and other funding streams."

Currently, Lancashire County Council and unitaries such as Blackpool have social care responsibilities, which are costly.

Council tax compared with police rise

Regarding council tax, Coun Hamilton-Cox said: "We are recommending our element be increased by 2.99 per cent. Not increasing it would come at a cost. I would argue the maximum increase is needed."

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He compared the city council's proposed Band D rise, representing an £8 rise, with Lancashire Constabulary's proposed £15 rise for its tax. He said the police force tax has risen significantly over recent years.

His biggest concern was the city council's capital budget for major one-off projects. He said: "In past years, we have threatened to go to external borrowing but have instead used internal sources. And our capital programmes have tended to under-spend. But external borrowing will probably be expected in future. Let's hope the cost of borrowing has peaked and will become cheaper. But it is a risk."

Forthcoming capital plans include buying new bin lorries and £5m to install the Burrow Beck solar farm near Lancaster University. Another idea is to transfer heat from a IT data centre to help warm Salt Ayre. That links to the council's upgrade to the area's fibre cable network.

'Details needed'

Opposition councillors including Conservative Andrew Gardiner and Labour's Phillip Black generally accepted the council tax proposals. But they wanted more budget details.

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Coun Black said: "When the budget papers come, will there be clear information about savings, so we know how any consequences will play-out over the year?"

And Labour's Martin Gawith said: "The council's structural deficit has grown and last year the top finance officer said we need to address it. I hope we are because it will bode badly for the people if we don't."

Catherine Potter of Lancaster City Council
Catherine Potter of Lancaster City Council -Credit:Lancaster City Council

Labour's Catherine Potter asked for details on grants for community groups and events as soon as possible, so they could make plans. She said: "Morecambe's Vintage festival or Baylight usually don't know until May or June if they getting any funding. Can organisations be informed as early as possible. This is something I tried to do when I was on the cabinet."

The council also supports bodies including Citizens Advice, Dukes Theatre and Lancaster CVS.

Coun Hamilton-Cox said more budget details would come and work was ongoing on the long-term deficit.

Green Coun Caroline Jackson, the council leader, said: "We need the 2.99 per cent rise for services. That means we are not providing a big list of cuts and economies. The budget reflects where we have saved money or made money and looked at opportunities. In the past, costs associated with homelessness were looking serious. But we have taken action and reduced risks.

"We've also tried commercial projects and are probably in the middle regarding councils' commercial activities. Some councils have done well, some badly. To be in the middle is probably good."

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