Herefordshire Council has agreed the 2025/26 budget
Following a period of public consultation, consideration by the Scrutiny Management Board, and Cabinet agreement, the 2025/26 budget proposals were today (7 February) approved by Full Council.
Like many other councils across the country, Herefordshire Council has seen changes to funding arrangements which have reduced the money it receives from central government. This reduction in core funding comes against a backdrop of increasing demands for statutory services including child and adult care services and an increase in the cost of providing them.
The total revenue budget for 2025/26 will be £231.5 million.
The budget includes a council tax increase of 4.99%.
This increases the band D equivalent charge to £1,969.36, representing an increase of £7.80 per month.
Councillor Jonathan Lester, Leader Herefordshire Council 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.
“We have developed a sustainable financial strategy for 2025/26 and onwards, to ensure the council can achieve an ambitious programme of innovation and improvement to deliver the best for Herefordshire. 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% 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 Council meeting on Friday 7 March 2025.
