Maldon residents will see their council tax rise from April, but thousands of households will get a £150 refund to help them manage increasing living costs.

The council tax rise was approved at Maldon District Council's budget meeting on Thursday night (24 February).

It means an average Band D household in the Maldon district will see an increase of £5 per year, which is an increase of 2.41 per cent - below inflation at 5.5 per cent.

In her budget speech, Conservative leader Penny Channer said: "Whilst bringing in this increase, we note that the government has recognised the pressures currently facing both councils and residents and has introduced a £150 refund for those in Band A to D properties, as well as allocating money for a discretionary fund."

Residents living in Band A to D properties who pay council tax by direct debit will see the £150 refund go directly into their bank accounts from April, while those who do not pay by direct debit will be contacted by the council and invited to make a claim.

Councillor Channer told members the budget was concerned with "consolidation - focus on delivery of existing policies and priorities" due to the impacts of Covid and the "financial challenges ahead".

She said the council had distributed over £10m of government support to local businesses over the pandemic.

She said: "With the challenges of the past year, it is not totally unexpected that the budget for the year succumbed to some pressure. There was additional budget pressure that could not be offset.

"Currently, the forecast indicates £112,000 will be utilised from the general fund to balance the budget.

"Council finances may appear healthy, with the general fund reserve currently sitting at £5.6m.

"However, the medium-term financial strategy sees increasing budgetary pressures in coming years, forecasting the general fund level will slip below the minimum reserve level of £2.6m by 2024/25 unless action is taken - this being against a potentially worsening picture, with costs rising due to inflation at 5.5 per cent."

She said the council would be exploring "opportunities for the district that may emerge in the recently-published levelling-up white paper" alongside opportunities for growth through tourism - "a key driver for our local economy".

Projects approved as part of the budget include a £128,000 scheme for "essential" works to Promenade Park due to health and safety risks alongside resurfacing the White Horse Lane lower car park, costing £77,500, and carrying out £60,000 worth of repairs to Butt Lane car park.

The Independents praised the budget, with Councillor Jeanette Stilts thanking Councillor Channer "for all the hard work that has been put into it".

But Conservative councillor Adrian Fluker warned: "Unless we act soon, reserves will run out."

He said: "To deliver this budget, a substantial draw-down on reserves will be necessary, which, over the course of the forthcoming municipal year, will amount to almost £10,000 per week - that is unsustainable."

Councillor Mark Durham said: "We are all aware of what was in the levelling-up white paper, and the final part of that involved potential reorganisation.

"It's too early to predict exactly how that reorganisation of local government will fall but the discussions are already underway and, as Councillor Fluker says so eloquently, if we have burned all of our reserves, effectively burned all of our boats, we are not going to be in a strong position when it comes to negotiating whatever the format the new local government environment is."

Councillors agreed the council's finance working group could be expanded by one or two members, after Councillor Fluker put forward the idea.

Councillor Channer also told members in her speech the council would be reviewing corporate contracts, including waste and leisure, and finding ways to generate income from commercial activities.

"We now need to march positively and proactively forward in the recovery from Covid," she said.

"People need to have confidence in our council - our ability to deliver.

"Therefore, budgets need to be sustainable. It is not just about balancing budgets, it is important that use of reserves is not increasing year on year."

Members voted the budget through unanimously - including the council tax rise.

READ MORE:

- Maldon District Council appoints new Conservative leader in meeting disrupted over public participation concerns

- £128k needed to carry out works to Maldon Promenade Park due to health and safety risks