Authority plans 5% cut to council tax rate

Harborough District Council has set out plans to cut its share of the council tax bill by 5%.

The authority said the move would see its precept reduce by £9.16 for a band D property from 1 April.

The council, which is led by a coalition of Liberal Democrats, Labour, Greens and an independent, could be one of the only authorities in the country to reduce council tax, if the plans are approved.

Liberal Democrat council leader Phil Knowles said: "Not many councils will be doing this but we've looked at the numbers and it's realistic as one-off."

He added: "We have been planning for the worst case scenario but the financial settlement the government gave us was bad but not as bad as we had feared.

"Our cut would not be a lot but it is something and we know people are struggling with the cost of living."

The majority of the share of council tax paid by people in the Harborough district will go to Leicestershire County Council, which is considering a 2.99% increase in its precept. Other portions fund the police and fire service.

District council papers show the authority is predicted to spend £858,000 more than its income in 2027-28 with the deficit rising to £2.8m by 2028-29.

However, the council tax cut would be funded from reserves which stand at £24m, a finance report said.

The council is also proposing to freeze car parking charges for 12 months from April and not raise the cost of charges for green bin collections.

Conservative opposition group leader Simon Whelband said there were proposals in the budget that his party could challenge.

He said: "The tax cut was first announced in a Liberal Democrat leaflet issued during the Logan by-election in Market Harborough, which they went on to lose, finishing third.

"Although tax cuts are always welcome, our group will want to examine the entire budget carefully, rather than focusing on a single headline announcement."

A consultation on the budget proposals runs until 6 February, with councillors due to discuss final proposals for the budget on 23 February.

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