Further to your recent reports concerning the parish precept (council tax) required by Holbeach Parish Council, the reason for this increase is as described in your report.
Following a decision by central government to remove council tax benefit and replace it with a local scheme along with reduced funding, while protecting certain claimants, South Holland District Council implemented a grant scheme to dampen the effect by a reducing amount over time. All parish councils were made aware of the scheme when it was introduced and they were informed of the 2015/16 grant in January. The effect on Holbeach Parish Council was that, although their net budget was increased this year by 1.9 per cent, the effect of the damping arrangement required a further increase in their precept.
All parish councils were made aware of the scheme when it was introduced and they were informed of the 2015/16 grant in January