Ashby de la Zouch Town Council says it aims to limit council tax increases over the medium term - despite experiencing 'severe financial pressures' last year.

The council met on Monday evening to reveal its Forward Plan for the next four years - and addressed the issues it currently faces.

Council leader, Cllr Chris Smith, presented the document which said that total expenditure in 2022/23, the year before the local elections, exceeded the budget by £129,000 and total reserves falling to £106,000 - which represents approximately 40 per cent of the level of reserves recommended by the council's auditors.

This resulted in the Town Council increasing the band D charge by 33 per cent to £120 for a band D property.

It was also noted that Ashby's population has increased by 20 per cent over a decade - according to the 2021 census - and is now 16,491, with forecasts saying this will inevitably grow over the coming years with new housing being constructed.

The council added that although Ashby is known as a prosperous town, 'there are also significant levels of deprivation'.

Monday's meeting heard there was an unbudgeted expenditure of £20,000 related to the purchase of the Bath Grounds

The report says: "Against the background of a growing town, inevitably, demanding more of the Town Council, and finances in need of strengthening, it is doubly important that the Town Council has a robust forward and financial plans to meet its vision, aims and objectives."

But the council says it wants to put plans in place that will see reserves increase by £22,000 this year, with the aim of having a total of £259,000 by 2028.

The report adds: "Given this financial context, but also recognising that the cost of living crisis is still with us, the council aims to limit any increase in council tax to no more than inflation over the medium term. 

"Together with efficiency savings, this will enable reserves to be strengthened and allow expenditure to meet the council's strategic aims

"Projections over the next four years are based on reasonable assumptions about growth of population, inflation and salary increases over the over the period.

"There is clearly considerable uncertainty over this period, but the projections demonstrate a strengthening of reserves as well as a growth in discretionary services.

"The projected income for 23/24 is £889,000, represented by £746,000 raised from council tax and £143,000 in other receipts.

"The projected expenditure is £867,000 which, if met, would result in £22,000 being added to the reserves. 

"This is a good performance. Given the budgeted surplus was £16,000 and, an unbudgeted expenditure of £20,000 was incurred relating to the purchase of the Bath Grounds, it will go someway towards restoring the council finances but further increases and reserves are still required."