COUNCIL tax will be increasing in Andover and Romsey - however the increase will be below inflation as councillors look set to approve this year's budget.

The final decision on Test Valley Borough Council's financial plan will be made during a full meeting this evening (Friday, February 25), in which an increase in council tax will be given the green light.

A rise of 3.4 per cent has been recommended by civic chiefs, meaning a Band D property will now pay £153.91 a year, a spike of £5.

This news follows a challenging time for local authorities – last year, the council faced additional pressures of over £1m, even after significant support from central government.

A report compiled by the council has said while services effected by Covid have broadly returned to pre-pandemic levels, with the exception of car parking revenue which remains down, it is still forecasting a reduction in income for the upcoming financial year.

The council has further outlined "ambitious" plans to regenerate both Andover and Romsey town centres, and views the recommended increase in council tax as a way to maintain the delivery of those key infrastructure projects. 

Those who may be the hardest hit by the increase have been provided a safety net by the authority, which approved its council tax support scheme at a meeting in January.

The scheme will help to protect the most vulnerable households from the full effect of the increased charge, with up to 100 per cent support offered for pensioner households and those in receipt of certain benefits. Up to 90 per cent support is also available for most working-age households.

Council bosses have additionally said they expect to administer the £150 payments to households in council tax bands A-D which will help to mitigate the increasing costs of living. 

Nick Adams-King, councillor for Romsey Rural, said: “I’m very aware of the financial pressures everyone is under, which is why I’m pleased the proposed rise in council tax is below inflation. I’d prefer it if there were an even lower rise, however in order to protect our services we need to ensure sufficient funding is in place.  

"The council’s investment income from our Operation Enterprise scheme continue to help provide that funding and I’m pleased that we will once again be covering the shortfall in parking income from our reserves.  The reserves are there to be used in exceptional times, and the last couple of years have certainly provided those.”

Despite the proposed increase, TVBC’s share of the council tax will remain more than £40 lower than the average for the rest of England. 

Finance portfolio holder, councillor Maureen Flood, said: “It has been an incredibly difficult couple of years for everyone, and Test Valley Borough Council, like so many other organisations, has been hard hit by the pandemic. Rising utility prices have also had an impact more recently.

“Things are starting to improve but we are some way off plugging the hole in our budget left by covid. Thankfully we were in a strong financial position pre-pandemic so we are once again proposing to use a modest amount from our reserves. But it’s critical that we continue to manage our money carefully and identify savings where we can. We don’t take the decision to increase council tax lightly, and with many freezes over the years we have demonstrated that if we can avoid an increase then we will. But this will enable us to protect the vital services we provide and continue to support our communities.

“The below inflation rise of £5 on a Band D – less than 10p a week means an average bill of £153.91 for an entire year of Test Valley Borough Council services. This includes waste collections, maintaining the borough’s parks and open spaces, housing and homelessness, environmental health, managing benefits and grants, planning, licensing, economic development, leisure and supporting local communities. It also goes towards major projects, such as the regeneration of Andover and Romsey town centres.

“For most people, the proposed rise will be more than offset via the government’s £150 council tax discount.”

The meeting will take place on Friday, February 25 at 5.30 pm.