U-turn on council tax decision could mean a freeze for Harborough residents

A recommendation to freeze the current portion of council tax for 2023/24 looks set to be approved.

Harborough District Council’s Cabinet has recommended the move to keep the portion the same, equating to around £178 per year for a Band D property, to support residents through the cost of living crisis.

It follows considerations, last month, to hike costs up to £183 – an increase of three per cent.

But, following further discussion between Cabinet and full council on the 2023/24 Budget and Medium-Term Financial Strategy (2024/25 to 2027/28), the significant proposal was made.

The district council says it forecasts a surplus revenue budget for the first two years of the Medium-Term Financial Strategy, allowing it to freeze council tax. This is thanks to service budget reviews generating net savings of £975,000 for 2023/24, a good settlement from government and additional business rates income from Magna Park near Lutterworth.

For subsequent years the council is proposing an increase of 2.99 per cent per annum.

The council said it is ‘committed to financial sustainability and resilience to enable community investment’.

Cabinet leader Cllr James Hallam, who is the Cabinet lead for finance, said: “Like all councils we continue to face significant financial challenges, however, we will always provide high quality services to residents and businesses.

“It’s great news that we can freeze council tax for residents. This is only a small amount of relief to the taxpayer but every little helps.

“The surplus budget for this year and next will allow us to deliver elements of our Corporate Plan such as community development, climate change support and economic regeneration.”

The council tax bill contributes to public services and includes precepts from Leicestershire County Council, police and crime commissioner, Harborough District Council, Leicestershire Fire and Rescue and parish councils.

The council has recently consulted the public on its budget which also includes proposals for environmental grants and coronation grants.

To read the budget in full visit: www.harborough.gov.uk/council-meetings

A decision will be made at a full council meeting on Monday (February 27).