Residents of Herefordshire will face a 5% increase in council tax starting in April. This hike translates to an additional £98 per year for an average Band D property. The announcement coincides with warnings about a looming £30 million funding gap for local services.
Implications of the Council Tax Increase
The Herefordshire Council is set to present a draft budget for the 2026-27 fiscal year on January 20. This comes after the Conservative leadership criticized government funding levels. Council leader Jonathan Lester expressed his disappointment over the allocation, emphasizing the challenges of funding essential services in a rural area.
Government Response
In response to the council’s concerns, the government stated that it has provided sufficient funding to ensure “high quality public services” in Herefordshire. However, the council anticipates a further reduction in funding, with projections indicating a potential £17 million cut by 2028-29.
Future Projections
The anticipated cuts may necessitate annual council tax increases of 5% over the coming years. Lester noted the council’s strategy of avoiding drastic measures like requesting government bailouts or loans. Instead, the focus will remain on making responsible decisions to manage costs and sustain critical services.
Funding Overview
A spokesperson for the Ministry of Housing, Communities and Local Government highlighted that £78 billion is allocated for council finances next year, which includes up to £237 million specifically for Herefordshire. This funding aims to support the delivery of essential public services.
Key Facts Summary
- Council Tax Increase: 5% effective April.
- Annual Cost Increase: Approximately £98 for average Band D property.
- Funding Gap: Projected £30 million deficit.
- Draft Budget Consideration Date: January 20, 2026-27.
- Possible Funding Cuts: £17 million by 2028-29.
The local government is committed to maintaining essential services amid financial challenges. Continued engagement with the community and transparent decision-making will be crucial in navigating these changes.
