Herefordshire plans council tax rise and spending cuts

A 5 per cent increase in Herefordshire’s council tax, coupled with a £20-million cut in local spending, are now almost certain from April.

Herefordshire Council’s newly published draft budget for 2026/27 sets out an increase in the band D property charge to £2,067.63, an increase of £8.19 per month.

Council leader Jonathan Lester said the Government’s three-year “fair funding settlement” for the county means maximum 5 per cent rises for the following two years as well – though he points out that other local authorities “are looking at 10 per cent rises – an idea we are not entertaining at all”.

Chief executive Paul Walker said the Government’s settlement, due to be confirmed next month, leaves the county with a “huge challenge” which will have to be addressed by making £20 million more in savings across departments in the coming year.

“We will continue to drive down costs, including through use of technology,” Coun Lester said.

“We are also proposing not to appoint to vacancies within the council. That will have an impact on service delivery, but it has to be in proportion.”

Mr Walker added: “Given the size of the challenge, there is no one silver bullet. But we need to ask, do we need as many people?”

Meanwhile initiatives such as creating new emergency accommodation in the county “means capital spending to reduce revenue costs”, he explained.

And with the new public realm contract to look after the county’s roads, due to start in June, “we will make sure we deliver value for money, and demonstrate that”, Coun Lester added.

The draft budget will first be discussed by the council’s Cabinet next week, then by its scrutiny committee, before passing to a full meeting of councillors in February for final sign-off.

Coun Lester added that Herefordshire, having seen which way the wind was blowing in local authority funding from some way off, has trimmed its sails accordingly.

“For a long time we have been in the mindset of needing to be financially sustainable,” he said.

“That means we are able to weather the storm in local government funding.”

“Each year we face the need to make savings,” Mr Walker added.

“Last year we were the first authority to have our accounts signed off, for the third year running. That puts us in a strong position.”