COUNCIL tax bills in South Lakeland are set to rise by a flat fee of £5 from April as local authority bosses attempt to balance the district's books.

Band D properties across the area, including those in Ulverston, are likely to be subject to the increase, with homes in lower bands charged less, for the coming 2017/18 financial year.

The money will help cover South Lakeland District Council's outgoings as it grapples with a series of cuts to its funding from central government.

Financial experts within the authority are now predicting SLDC's tightened income will create a gaping £1.2m black hole in its accounts by 2018/19.

A report on the situation to SLDC councillors - who are set to make a final decision on whether or not to increase council tax at a crunch meeting on February 22 - states savings will have to be found.

Using money from the authority's reserves account, which had a balance of £7.5m in April last year, is not considered a sustainable option to cover the projected deficit.

The report states: "The Localism Act gives local communities the power to approve or veto council tax rises at or above a limit set by the secretary of state.

"If an authority proposes to raise taxes at or above this limit they will have to hold a referendum to approve or to veto the rise.

"For 2017/18 this level has been confirmed as two per cent or £5, whichever is the higher, for shire district councils."

If approved, the £5 Band D increase for residents would be in addition to a proposed two per cent increase on Cumbria County Council's portion of the council tax, as well as a further two per cent fee payable to cover the escalating cost of social care for adults and the elderly across the county.

The proposals are also set to be approved in February at a meeting of the county council's full council.

And some parish and town councils could also hike their precepts leaving householders having to find new money next year.

The SLDC report adds: "Savings will be required from 2018/19 onwards to produce balanced budgets for the future."

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