Herefordshire plans 4.99% council tax rise

Council leader Jonathan Lester said the decision "has been a very difficult one"

Herefordshire is set to raise council tax by the maximum 4.99% from April.

The council said it faced extra cost pressures totalling about £26m because of the rise in National Insurance (NI) costs and the minimum wage, the increased demand for and cost of child and adult care services, as well as inflation.

It has also seen changes to funding received from government, including the removal of its Rural Services Delivery Grant, which was worth £7m in 2024-25.

The government said the rural services grant did not properly account for need.

The county's draft revenue budget for next year now totals £232m, up from £213m this year, which is a 9% rise.

However, in November the council forecast that it would actually spend £223m this year, based on spending in the first half of the financial year.

The increase includes 2% for adult social care and 2.99% for other services

Plans for the financial year ahead include making £6.9m in savings and mitigations across council services, the council said.

A typical Band D property will see a council tax bill of £1,969.36 for the year, an increase of £7.80 per month.

The increase includes a 2% rise, which is being ring-fenced for adult social care, while the remaining 2.99% is the maximum the council can raise the tax without a local referendum.

'Only alternative is cut services'

Councillor Jonathan Lester, leader of Herefordshire Council's minority Conservative administration, said the decision to propose the maximum council tax increase "has been a very difficult one", but the council's service costs "need to be met and funded".

He said the only alternative was to cut services.

"We will continue to campaign hard for the government to rethink its decision to get rid of the rural services grant before the final financial settlement is announced," Mr Lester explained.

The government had indicated it would provide support to offset the increased NI contributions for council employees, but the increase remained unfunded for businesses providing services to the council, he said.

A spokesman for the Ministry for Housing, Communities and Local Government said: "The Rural Services Delivery Grant does not properly account for need, and a large number of predominantly rural councils receive nothing from it.

"That is not right and is why we have repurposed the grant to allocate money more effectively, announcing new funding for local areas.

"This is on top of £222.3 million for Herefordshire Council, a 2.4% cash-terms increase in core spending power."