Worcestershire's Reform-led Council Faces England's Largest Council Tax Rise
Worcestershire's Reform-led county council is set to implement England's largest council tax increase this April, following special government approval to raise rates by up to 9%. This decision comes as a significant challenge for the Reform UK party, which has prioritized low council tax as a political goal. The move has already sparked controversy, with one local Reform councillor resigning in protest.
The government has also announced a £5 billion debt clearance for English councils overspending on special educational needs and disability (SEND) services. Additionally, £440 million in recovery grants for economically deprived areas aims to address criticism from northern Labour MPs regarding funding disparities. Local government minister Alison McGovern emphasized the government's commitment to improving councils' financial stability, stating that the settlement would empower councils to become 'agents of renewal.'
Several councils have been granted permission to exceed the 5% cap, including Bournemouth, Christchurch and Poole (up to 6.75%), Warrington (7.5%), Trafford (7.5%), Worcestershire (9%), Shropshire (9%), North Somerset (9%), and Windsor and Maidenhead (7.5%). The government argues that these increases will align household bills with average council tax levels, considering historically low rates in these areas.
The debt write-off for SEND debts is conditional on local authorities agreeing to implement updates in line with government plans, as outlined in an upcoming white paper. While councils appreciate the support, some authorities with significant overspends, like Hampshire county council, will still face substantial debt. The total SEND debt for English councils is projected to reach £6 billion by April.
The management of expected SEND overspends between April 2026 and April 2028 remains uncertain. The government assures a controlled approach, but the extent of support is unclear. Louise Gittins, chair of the Local Government Association, acknowledges the partial debt write-off as a step towards preventing insolvency for many councils, but emphasizes the need for further measures to address historical and future high-needs deficits.
Worcestershire's Reform leadership acknowledges financial turmoil, seeking government permission to borrow £71 million to avoid bankruptcy. They blame previous Tory mismanagement for the crisis. Meanwhile, attempts by Reform-led Warwickshire county council to implement a lower-than-expected council tax rise were unsuccessful due to opposition concerns about service cuts and council viability.
