Bolsover District Council increases housing rent by 7.7per cent and council tax by 2.99per cent

The Labour-led council considered the Mid Term Financial Plan for 2023-24 until 2027-28 at a council meeting on Wednesday, January 31, where the local authority approved a 2.99per cent council tax rate increase and a housing rent increase of 7.7per cent for its council tenants.

Council Director of Finance, Theresa Fletcher, said “The early indicative results of the Fair Funding Review, the abolition of New Homes Bonus, the fundamental review of Business Rates and the baseline reset of Business Rates were all detrimental to us as a district council [which] has seen much growth in recent years, both in business rates and New Homes Bonus grant.

“The removal of these funding streams will have a major effect on our financial position.”

The council met to approve its General Fund, Housing Revenue Account and Capital Programme as part of the council’s financial plan including the 2024-25 financial year budget considerations and to show it has comfortably balanced its books.

Bolsover District Council’s original 2023-24 budget had shown a small funding deficit of £0.018m or £18,000 – according to a council report – but throughout the year budgets were actively managed with savings removed from the budget once they had been agreed.

The proposed budget for 2024-25 has been balanced by the council with a transfer into the National Non-Domestic Rates Growth Protection Reserve of £188,000 because it has stated that where there is a shortfall in funding for a particular year it can be met from within the NNDR Growth Protection Reserve.

Bolsover District Council’s decisions have been influenced after considering staff pay awards, investment income, inflation, energy and fuel costs, the Local Government Pension Scheme and planning fees.

There has been is an overall increase on the 2023/24 Tax Base for Band D properties, according to the council, however, the Tax Base for some of its parishes has seen a decrease due to local circumstances relating to Single Person Discount, Council Tax Support claimants and, or net reductions in property numbers.

The council’s part of the council tax bill in 2023/24 was set at £197 for a Band D property and this had included a 2.99per cent increase.

In 2024-25 district councils are permitted to increase their share of the council tax by three per cent and Bolsover District Council’s proposed increase for 2024/25 has been approved at 2.99per cent, or £5.89 per year, for its part of the council tax bill with calculations based on a Band D property.

This increase should generate an additional revenue of £136,117 for the local authority with the the level of increase each year affecting the base for future years, according to the council, with the increase to be introduced from April 1.

For 2023-24, Bolsover District Councillors had set rent levels with a five per cent increase and the council’s Housing Revenue Account was in balance with neither a surplus or deficit estimated.

Factors in setting the 2024-25 rent increase include a Government allowance for councils to increase annual rent on both social rent and affordable rent properties of up to the Consumer Price Index of 6.7per cent plus one percent from 2020 which allows for a maximum 7.7per cent increase.

This means the average annual rent increases excluding service charges on all new build properties from April 1, 2024 will be £344.76 for social rent properties and £478.40 for affordable rent properties.

The council accepted that estimates in the Medium-Term Financial Plan for 2023-24 to 2027-28 are robust and that the level of financial reserves – although at minimum levels – are adequate, and that officers will regularly report back to the council’s Executive and its Finance and Corporate Overview Scrutiny Committee with budget updates.

In addition, the council which has a legal obligation to balance its budget approved the General Fund Medium-Term Financial Plan involving its current revised 2023-24 financial year and its 2024-25 budget as well as financial projections for 2025-26 to 2027-28.

The council also approved its Capital Programme with its revised budget in respect of 2023/24, and as an approved programme for 2024-25 to 2027-28.