TEST Valley Borough Council will increase the council tax for Andover and Romsey residents by £5 for the next financial year, it has been confirmed.

The borough council approved a budget proposal to increase the Band D council tax from £153.91 to £158.91 for the 2023-24 financial year, in a full council meeting held on Thursday, February 23.

The increase is lower than the current CPI inflation level of 10.5 per cent.

Presenting the budget proposal, Cllr Maureen Flood said the council’s Medium Term Financial Strategy aims to keep council tax at a comparatively low level, taking into account spending priorities and central government funding.

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She said: "The current level of council tax at £153.91 is still very low when compared to district council tax levels across the country. The council’s ability to sustain this low level means that it is one of only 31 district councils across the country where a £5 increase will be allowable and not trigger a referendum. In 2022/23 the average charge was 27th lowest out of 181 district councils in England and £42 (20 per cent) lower than the average charge.

"The council has ambitious plans to regenerate both Andover and Romsey town centres. With interest rates rising rapidly over the past year, the cost of borrowing is more expensive, and there is a need for the Council to build capacity to ensure that the regeneration plans can be delivered. The recommended increase in council tax levels will help to maintain income levels and support our delivery of those key infrastructure projects.

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"Against this background, it is recommended that the Band D council tax charge is increased by £5 from £153.91 to £158.91 for the 2023/24 financial year. This is an increase of 3.25 per cent, which is considerably lower than the current CPI inflation level of 10.5 per cent."

The council approved its council tax support scheme for 2022/23 at its meeting on January 18. This scheme helps to protect the most vulnerable households from the full effect of the council tax charge.

Cllr Flood added that the council continues to offer up to 100 per cent support for pensioner households and those in receipt of certain benefits. Up to 90 per cent support is available for most working-age households.