Government says yes to 9% council tax hike

The government has given permission for council tax to rise 9% in Worcestershire, if local politicians decide to go ahead with it.

The Reform leadership at Worcestershire County Council is battling an unprecedented budget crisis, and has suggested the authority could be declared effectively bankrupt unless it get more support with the 2026/27 budget.

Such a rise would be the largest in the council's history and add around £145 a year to band D bills.

A spokesperson for the Ministry of Housing, Communities and Local Government said no household in Worcestershire "would see their bills pushed above the national average".

Worcestershire's Reform leadership did apply for permission to go up to 10%, but ministers refused and instead settled on the lower figure.

The current rules prevent any authority from increasing council tax above 5%, unless they get special government permission.

The final figure will be revealed later this month, ahead of the council's annual budget setting meeting on 26 February.

The authority is still waiting on an answer over £71m it requested in Exceptional Financial Support (EFS) from the government, with Reform saying that would be a factor in deciding the final council tax rate.

Councillor Jo Monk, the leader, said: "We want to keep council tax as low as possible.

"We all pay council tax—we wouldn't want to overcharge anybody on that."

Opposition Conservative MPs and councillors have started a petition against the proposed rise, which more than 1,000 people have signed so far.

Bromsgrove MP Bradley Thomas called it "eye watering", adding: "This inflation-busting increase is a far cry from the promises the new administration made (to residents) when they wanted people's votes last year."

West Worcestershire MP Harriett Baldwin said: "Reform councillors were elected last May on a promise of finding efficiency savings to keep council tax down, yet they immediately hatched plans to increase council tax to balance the budget.

"Local people will want to know how the council can justify this massive increase and what improvements in services will come from this extra demand for cash."

Over the weekend, Reform Councillor David Taylor quit the party and became an independent in protest over the council tax proposals.

The government has allowed seven councils across the country the chance to increase tax above 5% from April, but said "in almost every case, the agreed rises are lower than what the councils have requested to ensure taxpayers are protected".

Worcestershire, Shropshire and North Somerset were the only areas given permission to go to 9%.

A council spokesperson said the government's report needed final approval from the House of Commons.

"We await this final confirmation and in the meantime, we are working through details of the proposed settlement to finalise the budget, ahead of it being discussed at full council later this month," they added.

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