2024 / 2025 Council Tax, Budget and Precept - Statement from Council Leader

This week Newark Town Council has set a budget and decided how much money it needs to ask from our residents during 2024-2025.

Over the past two years Council Tax precept increases have been held at under 2%. Over the same period inflation has been running at over 10%, with wages and energy costs rising sharply. This means that Newark Town Council has not been taking in enough money to pay for the services it currently delivers.

This problem has been compounded by the fact that housing growth in Newark has been much slower than forecast. This means we have fewer households than expected, who can share these costs.

Our main services include:

– Providing and running Allotments

– Providing attended public toilets in town

– Providing and running the Newark Royal Market

– Providing and running Newark Cemetery

– Providing, maintaining and repairing Play Parks

– Maintaining the town’s parks and green spaces, and floral displays in town

– Putting on lights at Christmas, and free entertainment throughout the year such as Newark on Sea ,  Newark Festival and Brass Band Concerts at the Castle

– Maintaining and operating the Town Hall, Art Gallery and Civic Events

To continue to provide these services, we need to ask for a greater contribution from our residents.

In order to restore the under-collection of the past 2 years, Newark Town Council has now voted for an increase in council tax precept of 11% in order to make up the shortfall for the 2024/25 tax year.

Although this percentage seems high, the cash amount is an increase of approximately £1 per month for a Band D council tax payer. For most properties in Newark, it will be much less.

Over the next year, we will also seek to create other additional income where possible. We will also continue to look at where savings can be made, without loss of services.

Our medium term financial position over the next five years shows shortfalls of income compared to expenditure. This is largely due to increased salaries (which are set by national government), increased utility costs as current gas and electricity contracts expire, and a reduction in grant income from Newark and Sherwood District Council (‘NSDC’). When the grant from NSDC was originally agreed, as part of a 2015 devolution agreement transferring public amenities to Newark Town Council, it was anticipated that new housing would be built at a faster pace than has actually happened. This means there are approximately 2000 fewer households (Band D equivalents) in Newark to pay council tax in the 2024/25 tax year than was forecast in 2015.

From the list of our services, the only statutory duty we have is provision of allotments. All of the others are provided, because over the years, the people of Newark have wanted them, because they make Newark a better place to live. It is right that we should periodically check if that is still the case. This is something we will be asking residents over the coming year.