People in Herefordshire warned of another council tax rise from April

It's part of two separate rises of 'core council tax' and adult social care, and still needs to be approved in February.

Money
Author: Shaunna BurnsPublished 7th Dec 2023
Last updated 7th Dec 2023

Herefordshire can once again expect a full five per cent rise in council tax from April, as the county attempts to close a growing budget deficit.

Under plans due to be backed by Herefordshire Council’s cabinet next Thursday, the maximum 4.99 per cent increase permitted by the government will be added to residents’ council tax bills for 2024/25.

This is expected to bring in £135 million, or nearly two-thirds of the proposed £205 million county budget, up six per cent on the current year.

It consists of two separate rises, of 2.99 per cent in “core” council tax and a further 2 per cent for adult social care, which is reckoned separately.

Additional increases to cover emergency services in the county have yet to be announced.

This means a typical band D property in the county will pay £1,875.76 next year, an increase of £7.43 a month.

Herefordshire Council say it's facing significant financial challenges, mainly because of rising costs due to inflation and the increased demand for both adult and children’s social care services.

The combined pressures facing the council had led to a predicted financial gap of £28.8million between forecast revenue and expected costs in 2024/25.

Following an extensive review of council expenditure and significant work to identify savings by council officers and Cabinet members, the council is now in a position to publish a draft revenue budget for 2024/25 which balances.

Council leader Coun Jonathan Lester warned: “The council is still facing significant inflationary pressures and if council tax rises by 4.99 per cent this is still well below the rate of inflation we’re seeing across the council’s contracts, and so only goes some way towards balancing the budget.”

He added: “We will need to transform how services are delivered and review the organisation’s size and structure to reduce costs, along with looking at opportunities to maximise income.”

The plan will still have to be approved by a full meeting of councillors next February.

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