Doncaster Council approves 3.99% tax hike and £500m increase in spending
The budget includes millions for new council houses
Council tax will rise by 3.99 per cent for 2025/26 as the City of Doncaster Council approved a £502million capital spending plan in the budget today (Thursday).
Mayor Ros Jones said the council tax increase is the lowest in Yorkshire, equal to £65.82 over the next year for Band D properties.
Speaking to the council chamber, Mayor Jones said: “Doncaster will continue to have the lowest council tax in South Yorkshire, the lowest council tax in Yorkshire and one of the lowest overall in comparison to other councils of similar size in the country.
“Doncaster is an incredibly well managed council, which is why we are still able to deliver the services we do, for one of the lowest council tax rates in the country.”
It is projected council tax income will reach £149.1m in 2025/26.
Authorities forecast additional financial pressures of £14.2m between 2025/26 and 2028/29 from a range of areas including increased demand for SEN transport, increased costs in the maintenance of Gateway One and Railway Square, a loss of income from bus gates and requirements for additional bin lorries.
The council tax hike was approved alongside an ambitious capital spending plan, which included £214m to be spent in the 2025/26 financial year.
Savings in the budget include reducing pension costs for former employees. The budget for the ongoing pension costs of former employees can be reduced as the number of former employees reduces over time.
The council expects to make a saving of £250,000 on pension costs over the next two years, on top of £350,000 worth of previously approved savings in the same area.
£82m will be invested into ‘Strategic Housing, Property & Safer Communities’ (SHPSC) this year, including £14m for phase two of the council housing building programme; £8.2m for social housing acquisitions.
The authority has set aside £42m for maintenance and improvement of its existing social housing stock over 2025/26. SHPSC investment will total £237m over the next four years.
£13.1m will be invested into the construction of the Station Gateway development in 2025/26 – part of a total investment of £24.5m over the coming years. £5.2m will be pumped into the Waterfront East development.
The entire capital programme will require £184m of borrowed money over the next four years.
Borrowing will fund just under 40 per cent of capital spending.
The revenue budget set the budget for adult social care at £170.8m for 2025/26, with children’s social care at £85.9m.
Mayor Jones told the council: “My budget proposals mark the beginning of a new chapter for Doncaster, as we rebuild our public services after 14 years of Conservative cuts.
“This budget provides sufficient resources to enable front line services to continue to deliver at their current service levels despite increased service pressures and rising costs.
“There remains a great deal of uncertainty in relation to Adults and Children’s Social Care costs and long-term funding for Local Authorities.”
In the revenue budget, the Mayor additionally announced £3m for “neighbourhood renewal” including regeneration of town high streets in areas like Askern and Conisbrough.
£500,000 for city centre security and safety was also announced in the chamber.
“We know more difficult decisions are still to come, but we know we can now look forward to a fairer future for local government funding,” Mayor Jones said.
“Fairer funding and multi-year settlements will be a game-changer for Doncaster, bringing increased stability and certainty, allowing us to re-build our public services and continue on our ambitious path towards regeneration and prosperity,” she added.
Councillors approved every aspect of Mayor Jones’ budget with 31 ayes to eight noes.