AS with many other councils across the country, Herefordshire Council has seen changes to its funding arrangements and has increased its council tax by 4.99 per cent.
The council has seen the money it receives from central government reduce significantly while other measures have increased including the demands for statutory services that encompasses child and adult care services.
The total revenue budget for 2025/26 will be £231.5 million.This increases the band D equivalent charge to £1,969.36, representing an increase of £7.80 per month.
Following a period of public consultation, consideration by the scrutiny management board, and Cabinet, the 2025/26 budget proposals were today (February 7) approved by full council.
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Councillor Jonathan Lester, Leader of the Herefordshire authority said: “Despite reduced funding from government, this budget sets out how we will deliver the priorities of the council plan.
“We have listened to residents through the consultation process, and are able to fund further investment in roads, maintaining the freeze on parking charges, increased flood resilience, and progress with the project to deliver the Western Bypass. All whilst balancing the budget by making efficiencies and ensuring best value for public money.
“Last year, facing extremely challenging financial circumstances, we took responsible, and necessary, decisions to make savings across all council service areas, leaving us in a more robust financial position this year.
“Council approved this budget today as one of the first in the country and I was delighted it received strong cross-party support. We have been able to respond to the very disappointing funding settlement from government, without cutting services, but that has meant we have had no opportunity to reduce the council tax increase – our long-term aim.
“But this is dependent on a fair allocation of funding from central government in future years, for which we will continue to campaign.
“Under these circumstances the decision to increase council tax by 4.99 per cent was unavoidable. The government has removed the rural services delivery grant, worth around £7million to Herefordshire.
“Alongside this, measures in the government budget particularly around national insurance where providers are passing on their costs to us have to be addressed.
“We know that the increase in council tax may be difficult for some local households. This is why we are maintaining the council tax reduction scheme, and the discretionary hardship fund.”
● The final setting of council tax, which will include the precepts for all the county’s parishes plus Police and Crime Commissioner and Hereford & Worcester Fire Authority charges, will take place at the full meeting of the council on Friday, March 7.