A rise in council tax for the Gainsborough Parish came as a surprise to Gainsborough Town Council.
There has been a 10.4 per cent increase in council tax to Parish Council tax charges despite Gainsborough Town Council resolving to keep their budget at the same level for the new financial year.
And as such they had not asked for an increase in council tax.
The Town Council believe that the increase may have arisen due to a reduction in the amount of money being granted by West Lindsey District Council to the Town Council to support Council Tax.
The Town Council said that prior to setting their Council Tax level they were informed the following by West Lindsey District Council: “I would like to reassure you that despite a cut in our overall grant we will be distributing the same overall amount of support grant as we did last year.”
A West Lindsey District Council spokesman said: “The parish council tax is based on the council tax precept less any council tax support grant.”
“This is then divided by the parish tax base to arrive at Parish Council tax charges.”
“In December, the council issued draft guidance on the amount of grant support it would provide to each parish council together with their individual tax base.”
“At this time all parishes, including Gainsborough Town Council, were notified of the changes and how to calculate their individual positions.”
“West Lindsey’s head of finance also met with Gainsborough Town Council in December to explain what impact the changes would have on their tax position.”
“West Lindsey District Council has distributed the same overall amount of support grant and attempted to direct this towards those parishes that need the funding.”
“As a result some parishes have seen an impact on the parish council tax charged.”
“Gainsborough Town Council has seen a reduction in its tax base of 15 per cent from the 2013/14 position and has also been awarded 50% per cent more grant than in 2013/14, the net effect being a 10 per cent increase in its Council Tax.”