Four scenarios for council tax share increase to be considered by Leighton Linslade town councillors at meeting on Monday

The council was due to submit its precept verdict to the billing authority Central Bedfordshire Council by the middle of this month.

But a final decision is expected to be delivered within the next fortnight, according to a report to a town council finance committee meeting on Monday (January 20).

“LLTC isn’t alone in facing considerable budgetary pressures caused by factors over which it has little control,” said a report to councillors.

“These are extraordinary times which have resulted in substantial increases in costs and incomes being compromised. The options presented in this report show how the budgetary requirement for 2025/26 can possibly be met.”

Factors influencing the outcome include the retail price index of 2.7 per cent as at September 2024 across various budget lines, as well as an increase of £11,092 to town council salaries budget through employer National Insurance contributions, according to the report.

The four options are:

> expenditure to be met entirely from council tax Increase from £180.78 to £187.82, a £7.04 rise or 3.9 per cent;

> council tax to rise by 1.9 per cent or £3.42 from £180.78 to £184.20, which would means 100 per cent of the currently available precept support fund is to be used;

> expenditure to be met entirely from council tax increase from £180.78 to £189.11, a rise of £8.33 or 4.6 per cent, if capital projects went up to £130,000;

> and council Tax to rise by £4.71 or 2.6 per cent from £180.78 to £185.49, which would mean 100 per cent of the currently available precept support fund is to be used.

Councillors will make a recommendation that the LLTC draft budget and the preferred funding method for 2025/26 will be presented to a council meeting on Monday January 27 for its final endorsement.

LLTC’s earmarked reserves were £1,378,912 as of December 31, while the general reserve was at £813,114 as of April 1, 2024, explained the report.

“The tax base has increased from 15,310 homes to 15,573, which is a net increase of 263 or 1.7 per cent. This increase is representative of the housing growth within the parish.

“The projected outturn for the financial year ending 2024/25 is currently unknown. A negative outturn for 2024/25 will mean that the precept support fund of £56,389 will need to be used to balance this year’s budget.

“Using this to backfill the revenue budget would mean reducing opportunity to fund one-off future projects yet to have funding committed to their delivery.

“Relying on the precept support fund to balance budget deficits isn’t sustainable and will inevitably add pressure to future years’ budgeting,” warned the report.

Councillors are asked to consider recommending to the town council approval of the proposed revenue budget of £3,266,767 for 2025/26, less anticipated income of £341,793) and how the budget requirement of £2,924,974 for 2025/26 should be met, added the report.

“LLTC is expected to have set a precept and notified the billing authority by mid-January through established practice. The principal authority CBC will be made aware this information won’t be forthcoming until January 28 at the very earliest.”

Town councillors will consider recommending to LLTC a preferred scenario or another way of meeting the budget requirement for 2025/26 at Monday’s committee meeting.