South Holland District Council has approved a balanced budget for the upcoming year, aiming to maximise income, support economic growth, and maintain efficient services despite ongoing financial challenges.

The budget-setting process has been particularly difficult due to changes in funding from Central Government, rising costs associated with Internal Drainage Board levies, and evolving demands from residents and businesses. However, the Council remains committed to key initiatives, including the creation of a Business Improvement District for Spalding, the deployment of Long-Term Towns Funding, and the development of the South Holland Health and Well-Being Hub, which is primarily grant-funded.

Significant Capital Investment

The Council’s £38.6 million Capital Programme is one of the largest in recent years, demonstrating a strong commitment to investment in the district. At a Full Council meeting on Thursday, 27 February, councillors approved a Council Tax increase of £7.11 per year for Band D properties, bringing the total to £208.53 annually. This equates to a modest rise of 14p per week or 2p per day. Most properties in South Holland fall within Bands A, B, and C, meaning their increases will be lower.

Residents who pay the Spalding Special Expenses in addition to Council Tax will see a reduction, with the Band D rate set at £23.13—a £2.70 decrease from the previous year.

Increased Support for Low-Income Households

From April 2025, the Council will enhance its Council Tax Support scheme, increasing the maximum support for eligible low- and no-income households from 75% to 85%. This move aims to provide additional financial relief to those struggling with household costs.

Addressing Internal Drainage Board Levy Challenges

One of the most significant financial burdens on the Council continues to be the Internal Drainage Board (IDB) Levy, which is predominantly funded through Council Tax. This year, the levy has risen to £3.57 million—an increase of £158,000 from the previous year. Since 2021/22, the levy has grown by £947,000, representing a 36% increase.

In response, South Holland District Council is actively lobbying the Government for a fairer funding approach to reduce the financial strain caused by these levies. As part of a group of 40 councils advocating for change, their efforts have led to an increase in Government support funding from £3 million to £5 million. The Council is now awaiting confirmation of its allocation from this additional funding.

Council’s Vision for the Future

Cllr Paul Redgate, Portfolio Holder for Finance, emphasised the importance of continued financial efficiency and investment in the district’s future.

“Despite ongoing financial challenges, we are committed to developing new opportunities, delivering services more efficiently, and creating new income streams to support the Council’s revenue budget. The increase in the IDB levy continues to impact our finances, and we are actively engaging with the Government to address this issue,” he said.

Looking ahead, the Council’s priorities include:

• Investing in infrastructure and facilities through Government funding
• Supporting town and rural centres in partnership with stakeholders
• Enhancing community engagement in service delivery
• Addressing deprivation in the district
• Advancing climate action through the Green Homes Initiative
• Improving housing stock and tenant support

With budgets for the coming years expected to be even more challenging, the Council is focusing on reducing operational costs while increasing capital investment to generate new revenue streams. By prioritising economic growth and efficiency, South Holland District Council aims to secure a sustainable financial future for the district.