News

2.94 per cent increase in Broxtowe council tax approved as Tory amendment rejected

By Lauren Monaghan, Junior Local Democracy Reporter

---

Broxtowe Borough Council has approved a council tax rise of 2.94 per cent in  the next financial year beginning in April and rejected a Tory amendment on its budget.

Broxtowe Borough Council met yesterday (March 5) in a full council meeting to discuss the authority’s budget for the next financial year.

A 2.94 per cent increase in its share of household council tax bills was approved for 2025/26, meaning residents in a Band D equivalent property would pay £192.93 in 2025/26, which is an increase of £5.51 for the year.

For Band A homes, the increase per year is about £3.67.

Councillors voted 30 in favour of the budget and nine abstaining.

Speaking at a cabinet meeting in February, Cllr Milan Radulovic (Brox Alliance), the authority’s leader, said the council will receive around £390,000 less this year compared to last year in the basic settlement from government.

Councils have had to factor in the rising costs they face from national insurance contributions when making their budgets for the next financial year.

Zulfiqar Darr, Deputy Chief Executive at the council, previously confirmed at the cabinet meeting the council will only get £150,000 reimbursement from the government to cover the £444,000 extra national insurance costs.

Speaking in the meeting yesterday, Cllr Greg Marshall (Brox Alliance), who’s the deputy leader. said: “This budget recommends no reductions in jobs or services.”

He said the council anticipates drawing just over £1.2 million from general reserves in 2025/26 to help balance its budget, which is around £600,000 less than the estimated shortfall last Autumn.

Reserves are money set aside by councils to cover unforeseen costs and future expenses. The authority’s reserves are expected to fall from £6.07 million from April 2024 to £3.07 million by March 2026.

Cllr Marshall added: “Having to utilise our general reserves is always frustrating but we will be working to achieve a balanced budget over the lifetime of this council [in 2027].”

Responding to this, Councillor David Watts (Lib Dem) said: “A very large withdrawal from reserves always makes me feel uncomfortable but I do think overall you’ve done the best you can when we are going into bat with effectively one and a half hands tied behind our backs.”

Cllr Hannah Land (Lib Dem) said: “It does concern me having to reach deeply into the general fund for this budget, I can’t see any other way around it, given the financial settlement we were given.

“We need to be keeping a close eye on future budgets and how much that general fund diminishes.”

A parking reward scheme was confirmed in yesterday’s budget meeting, which will see customers visiting Broxtowe town centres receive free parking if they spend a certain amount in shops- it’s success will be reviewed.

Speaking to the Local Democracy Reporting Service (LDRS) following the meeting, leader Cllr Radulovic said: “We think if we can spend £50,000 [implementing the scheme] – that doesn’t come from council tax – it will potentially generate over half a million in revenue and footfall in town centres.

“It’s to essentially help and support local shops and businesses through a difficult time and period.”

The Conservatives attempted to amend the council’s budget in yesterday’s meeting.

This tabled re-instating the one-hour free car parking across the borough and improved street cleaning, which would require £350,000 in total.

Funding for this was proposed via the authority’s general reserves.

Cllr Philip Owen, leader of the Conservative Group said: “You will see that I have suggested to fund this by drawing more money from reserves, you may say this is irresponsible, I don’t think it is in the current climate.

“You emphasise £6 million in general reserves, the removal of £350,000 is not a significant amount.”

Cllr Owen noted through the government’s local government reorganisation plans that the Borough Council will not exist in future, questioning the need for the council’s financial plan.

He added: “What money we do have in our coffers should be for Broxtowe residents.”

Responding to the amendment to the LDRS following the meeting, Leader of the Labour Group, Cllr Peter Bales, said: “It was very interesting they were happy to draw down a further £350,000 from reserves, it isn’t fiscally responsible.”

The Conservative amendment was voted down with 25 councillors against and 14 for.