Pendle councillors have agreed a council tax rise of 2.99 per cent for the borough and other financial plans for the next 12 months at the annual budget meeting.

The ruling Conservative group said Pendle Council needs a 2.99 per cent rise to bring in much-needed income to tackle financial pressures.  The rise is the maximum percentage allowed for boroughs without calling a public referendum to go higher.

Opposition Lib-Dem councillors had suggested a lower increase of 1.99 per cent while Labour wanted no rise whatsoever. They said cost-of-living pressures meant local households are already under pressure and Pendle Council had to help however it could.

But Conservatives, led by Coun  Nadeem Ahmed, who is also the council leader, said raising council tax was vital for the borough council’s future. Not doing so would be irresponsible and would risk pushing it towards deep financial difficulties, official warnings and potential intervention by officers or government.

Commenting on Labour calls for a council tax freeze, Coun Ahmed said: “I’m not sure Labour councillors have heard the clear and stark messages about the council being responsible. Labour’s alternative is a populist budget and I can see the headlines. But it will be residents who suffer in the end. If our budget has no council tax increase this year, it would effectively bankrupt the council. We need to be honest about the budget.”

Under the new council tax, a mid-sized Band D household will pay just over £289 to Pendle Council for the 2023-24 financial year. The increase is  £8.42 for the year.  Many homes are in Band A, where the increase is £5.61 for the year

In addition, Lancashire County Council will charge households £75.56 precept,  Lancashire Police and Crime Commissioner will charge £15 and Lancashire Fire Authority will charge £5.

Elsewhere in Pendle Council’s new budget, the Conservatives had to negotiate with other political groups on cuts, spending or investment, and if fees and charges should be introduced for some services or increased,

After over an hour of cross-party talks, Labour and the Lib-Dems proposed an alternative budget which was supported by all the council.

The potential introduction of charges for replacement household wheelie bins and bulky waste collections, and a rise in taxi licensing fees were rejected. Potential increases to pest control work or cemetery fees were also rejected.

On the new compromise budget, Coun Ahmed said: “I think the plans are prudent and sensible. On balance, I think it’s the right budget. ”

He was pleased that a brownfield land development fund had been kept and no increases were being made for cemetery fees. He also pointed-out the Earby flood alleviation plan.

Lib-Dem Coun David Whipp said his group had opposed fees for wheelie bin replacements or bulk waste collections. They also opposed reductions to area committee budgets and wanted Earby flood alleviation work to remain in the plans.

Labour Coun Asjad Mahmood emphasised his group’s ongoing opposition to the council tax rise, or potentially increasing fees for taxi licensing or pest control.

He added: “Families are struggling with the cost-of-living and rising energy, food and mortgage costs. We have got to help them. Taxi drivers have had a tough time too.

“Also rats and pests are a problem in some areas. Some rats are huge and growing – as big as squirrels. And there have been incidents where they have chased children and adults. Pest control is important”

However, councillors agreed to increase fees for people seeking early advice on planning applications and building control fees. There was also a compromise agreement on financial plans for Liberata, a private company contracted to provide some Pendle Council services and roles, including managing its estate of properties. 

Pendle Leisure Trust, which runs local pools, gyms, leisure centres and Colne Muni theatre is currently being reviewed. Future debates on leisure services are expected.

The compromise deal on the budget arose because of the number of Conservative councillors available to vote in-person. They did not have a clear majority.  In some votes,  Pendle Mayor Coun Yasser Iqbal, a Labour councillor,  used his casting vote, which went against some Conservative plans.