New Milton residents face 6.3% hike in share of council tax for 2024-25

NEW Milton’s council tax share is set for a 6% hike – and if not for extra help from the reserves, it would be more.

The authority’s share of council tax for an average band D household for 2024/25 is set to rise by £5.95 from last year’s £117.31 to £123.26 – equating to £2.37 per week.

This comes after last year’s precept went up from 2022/23’s £111.67 per a band D household.

The town council’s total budget for 2024/25 would be £1,358,929 – up from the previous year’s £1,279,891.

Cllr Alan O’ Sullivan told a recent finance and general purposes committee meeting the overall 6.3% precept rise would have been 9% without £33,500 being taken from general reserves, as it was last year.

However, mayor Cllr David Hawkins argued the reduced increase was still too high for residents struggling with the ongoing cost-of-living crisis.

“Heating and lighting is also going up because the price cap has been removed,” he said.

“I think inflation is about 5% now, so we should keep the precept rise at 5% to be more of a help.”

But Cllr Steve Clarke disagreed, arguing heating costs had actually been falling, albeit from very high amounts.

He also stressed the need for the town council to remain financially healthy, highlighting the 50-odd councils across the country facing potential bankruptcy.

“We want to maintain a budget that meets our costs. Unfortunately if we don’t increase it this year we fall behind next year and don’t meet our costs,” Cllr Clarke said.

Backing Cllr Hawkins, Cllr Alvin Reid called an increase of more than 5% “totally wrong”.

He said: “The only way forward, to me, is that we take money from our reserves and not hammer the taxpayer.”

However, his proposal to recommend that £50,000 be taken from general reserves to limit to a 5% precept rise was defeated by a vote of 6-3.

Cllr O’Sullivan’s proposed recommendation to again use £33,500 from reserves to keep the 6.2% precept rise was carried by a 7-2 majority.

F&GP chair Cllr Neil Tungate concluded: “It seems to be the general feeling among most people that 6.3% was acceptable – they may not like it, but it’s acceptable.”

The 2024/25 budget and precept recommendations are now due to go before full town council for approval at its meeting on 2nd January.