North East Derbyshire Council finalises 2.99% council tax increase
The local authority has set its budget for the coming year
Last updated 6th Mar 2025
North East Derbyshire District Council has formally finalised its approved council tax plans for the 2025-26 financial year with a 2.99per cent increase after considering all the other precepting authorities’ demands to calculate the requirement for the area.
The Labour-controlled council’s Deputy Leader Pat Kerry addressed the setting of the level of council tax for 2025-26 during a meeting on March 3 which was approved by councillors with a unanimous vote after the council’s overall budget plans for 2025-26 had been approved at the last Full Council meeting on January 27.
A council spokesperson stated: “NE Derbyshire District Council administers the Collection Fund for all of the precepting authorities operating within the area of NE Derbyshire.
“In order to pay the amounts requested by the various precepting authorities – including NE Derbyshire District Council – it is necessary to set a council tax which raises sufficient funding to ensure that the Collection Fund can meet the financial demands placed upon it.”
In order to calculate the council tax requirement for the area at the relevant bands, according to NE Derbyshire District Council, the demands of Derbyshire County Council, the Police Authority, Fire Authority and parish councils have had to be taken into account.
The council has already approved its part of the council tax increase for 2025-26 with a 2.99per cent increase of effectively £6.29 to be levied in respect of a notional Band D property.
This should see the council’s share of the 2024-25 council tax for Band D properties which stands at £210.38 increase to £216.67 for 2025-26.
NE Derbyshire District Council calculates that an increase for 2025-26 of 2.99per cent can be expected to generate additional annual revenue of £294,268.
It has also previously approved increasing its rent levels for 2025-26 by 2.7per cent with both the council tax increase and the increased rent levels to take effect from April 1.
Deputy Leader, Cllr Pat Kerry, who is also the Portfolio Holder for Finance, said: “We have taken the decision to increase the council tax bill by 2.99per cent this year and housing rents by 2.7per cent.
“It is never easy making these decisions. A balance must be sought between our ability to continue to deliver sustainable services and the impact on our residents.”
Cllr Kerry previously stated that the council is making good progress in addressing savings to meet a £664,000 shortfall for the 2024-25 financial year’s budget and a budget deficit has been identified for the 2025-26 financial year of £505,000.
He claimed high levels of uncertainty around national plans and reforms mean that beyond the 2025-26 financial year’s budget the Medium Term Financial Plan up to 2028-29 will remain uncertain.
New regulations mean the council Housing Revenue Account is also under greater pressure, according to the council, after the introduction of a new inspection scheme in April and costs of delivery are growing but Cllr Kerry says it is continuing to work with housing manager Rykneld Homes to provide high quality housing services.
From 2027-28 budget pressures are expected to increase, according to Cllr Kerry, due to the uncertainty surrounding national funding and reforms which makes forecasting very difficult but its level of reserves means it should be able to meet short-term uncertainties.
The council is also facing uncertainty over the Government’s Local Government Reorganisation plans to possibly introduce unitary councils to replace two-tier systems like Derbyshire’s with county and district councils.
Cllr Kerry said: “This has been a challenging budget cycle because of the high levels of uncertainty around national plans and reforms.
“It is a budget that meets the pressures we face whilst continuing to provide high-quality services to our residents and businesses. We also recognise that there is still a need to continue to tackle future pressures in a planned and managed manner.”
Council Leader Nigel Barker also said that despite so many uncertainties the council remains on a ‘sound financial footing’.
The council has already also approved the ongoing budget for 2024-25 and the budget for 2025-26 for the General Fund, and the Housing Revenue Account and its Capital Programme as part of its Medium Term Financial Plan for 2024-25 to 2028-29.
It has also approved a multi-million pound management fee payout for the undertaking of housing services of £12.8m and a management fee of £1.1m to go to Rykneld Homes for 2025-26.
The council claims it has an excellent track record of identifying and delivering service efficiencies with a strong commitment to financial resilience and good financial governance.
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