Herefordshire council tax set to increase by 5%

8 hours ago

Tom EdwardsHereford & Worcester political reporter

News image — Council leader Jonathan Lester has criticised the government over its funding deal

BBC A man sat behind a desk, wearing a black suit, white shirt and red tie. He is in front of a laptop. — Council leader Jonathan Lester has criticised the government over its funding deal

Council tax is set to rise by 5% across Herefordshire, with residents also being warned about a funding gap of £30m.

The increase, which is expected to come into force from April, would add about £98 a year for an average Band D property. A draft budget for 2026-27 will be considered by the cabinet on 20 January.

It comes after the Conservative leadership of Herefordshire Council revealed that all services were under review, with the leader Councillor Jonathan Lester saying he is "deeply disappointed" at the funding allocation from government.

In response, the government said Herefordshire Council had received enough funding to deliver "high quality public services".

Back in September the council warned that it was facing a £27m black hole for 2026-27, in a bid to lobby the government for a better deal.

The authority, which was told of its settlement in December, now said that gap was estimated at £30m, which is 11% of its net budget for the forthcoming financial year.

The outside of Herefordshire Council's headquarters in Plough Lane, in Hereford - showing a brick and glass-fronted building. — Herefordshire Council says it is looking at ways to cut spending

The Conservative administration is now investigating ways to plug the gap, including a review of all services.

It also said the government's Fair Funding Review would see £17m cut from Herefordshire Council's funding by 2028-29, meaning council tax increases of 5% were likely every year between now and then.

Lester added: "We remain deeply disappointed by the government's funding approach that has left Herefordshire residents short-changed - again.

"It is clear they have failed to sufficiently fund the additional costs of delivering services to residents across a rural county like ours.

"Unlike some councils, we won't be seeking a bailout or government loan, or calling for 10% council tax increases.

"But, we will take tough but responsible decisions to control costs, protect essential services and keep the council financially sustainable."

A spokesperson for the ministry of housing, communities and local government said: "We're making £78bn available for council finances next year, including up to £237m for Herefordshire to help them deliver the high-quality public services people need."

Follow BBC Hereford & Worcester on BBC Sounds, Facebook, X and Instagram.