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LINCOLNSHIRE WEIGHS UP COST OF CHANCELLOR'S BUDGET

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The proposed increases in spending on education and social services were welcomed, but the finance and resources co...
Q: How much will the chancellor's budget cost Lincolnshire CC in increased national insurance contributions?

The proposed increases in spending on education and social services were welcomed, but the finance and resources committee noted that other measures announced by Gordon Brown would increase the council's costs.

The chancellor said that the rate of the landfill tax will increase significantly. The county council already pays£3.7m a year in landfill tax, equivalent to about£6 per person in Lincolnshire.

He also confirmed the introduction of a new aggregates tax. This will cost the county council£280,000 a year.

A: The chancellor also announced increases in the contributions which employers make for national insurance. This will cost the county council about£3m a year, increasing the costs of providing services to the public.

Nationally, the LGA is pressing the government to recognise these increased costs in its public spending review.

Martin Hill, vice-chairman of the finance and resources committee said: 'I welcomed the proposed increases for education and other services. However, the government should provide additional grant to local authorities to fund the extra costs which the Budget is imposing on them. Otherwise, these extra costs will have to be met by local council tax payers.'

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