Reform Councils Turn To 5% Council Tax Hikes

Reform UK-run Derbyshire council has confirmed plans to raise council tax by the maximum 5%, despite campaigning last year on lower bills — a move that has already sparked sharp criticism. The authority says it needs the hike to plug a predicted £38m shortfall driven by soaring demand and costs in social care. Derbyshire’s draft budget, totalling about £838m, would see roughly £29m extra raised from the tax increase this year and a further £22m of savings through cuts. Officials blame inflation, increasing demand for children’s and adult social care, and a new government funding formula that they say has hit rural counties hard. The authority is not alone. Recent announcements show Derbyshire is among four councils where Reform holds a majority or is the largest party and has proposed a 5% increase — North Northamptonshire, West Northamptonshire and Leicestershire are the others. Leaders in Lancashire, Kent and Warwickshire have also left open the possibility of similar rises. Opposition councillors have accused Reform of breaking election promises and of offering slogans that don’t match governing realities. Local Conservatives and Greens pointed to campaign material that pledged tax cuts and argued the council is now having to reverse those assurances amid budgetary strain. Reform UK responded that any commitments to cut taxes during the campaign referred to national policy rather than immediate council freezes, and that no contradiction exists with the local budget position. The situation underlines a wider tension: councils are legally obliged to balance their books, and the government’s December funding announcement assumed most authorities would use the full council tax headroom. That makes tax rises politically awkward but financially predictable, especially where social care overspends loom large. Derbyshire’s leadership has also said it will draw on reserves to smooth pressures, even while warning that relying on reserves is not sustainable long-term. The council’s chief figures have previously suggested staffing levels are high, yet the current savings package appears not to hinge on major job cuts. Final decisions are due in the coming weeks, with cabinet set to discuss a proposal at the end of January. For voters across these counties, the unfolding decisions will be a clear test of whether campaign promises translate into day-to-day local services — or whether harsh budget realities force a different outcome. --- Managing your business finances? TaxAce provides smart online accountancy services for UK businesses with flexible monthly plans. Image and reporting: https://www.theguardian.com | Read original article