A Reform-led local authority in Derbyshire is planning to increase council tax by the maximum allowed amount, despite promises made during the local election to reduce taxes.
Budgetary Pressures Drive Tax Hike
Derbyshire county council confirmed the rise after predicting a £38m gap in its budget, attributed to overspends in children’s social care and adult social care.
The council is now one of four local authorities – including North Northamptonshire, West Northamptonshire, and Leicestershire county councils – where Reform UK holds a majority or is the largest party and has proposed a 5% council tax increase.
Leaders at Reform-led Lancashire and Kent county councils, as well as in Warwickshire, have also not ruled out a 5% council tax rise.
Local authorities are scheduled to approve council tax proposals in late February or early March. The government’s funding plans for local authorities, published in December, anticipated most would raise council tax by the maximum amount.
Impact on Derbyshire Residents
The council tax increase in Derbyshire is expected to generate approximately £29m this financial year and will be implemented alongside a new round of cuts totaling £22m, according to budget saving proposals.
The proposed savings do not appear to include significant job cuts, despite council leader Alan Graves previously claiming the local authority was 20% overstaffed.
Budgetary pressures are blamed on inflation, rising demand, and the government’s new local government funding formula. The council states that, as a rural shire county, it has been negatively impacted by the reforms and maintaining funding levels will require setting council tax at the maximum permitted level.
Criticism from Opposition Councillors
Opposition councillors in Derbyshire have criticized the proposed increase, accusing the party of “empty rhetoric.”
Conservative opposition leader Alex Dale stated that Reform’s promise to “cut your taxes,” prominently featured in election materials, was “nothing more than empty rhetoric.”
Gez Kinsella, leader of the Green group at the council, said the party had promised to “cut taxes and improve services,” adding that Reform’s promises were “as true as the previous Conservative administration fantasy economics.” Kinsella shared leaflets and letters distributed before the local elections which pledged to “cut your taxes” and criticized rising council tax bills.
A Facebook post from Derbyshire councillor Martin Bromley in March included the statement: “Say no to Labour … say no to increased council tax.”
Reform UK Response
Reform UK stated it never promised to freeze or reduce council tax during the election campaign, clarifying that any pledges to reduce taxes related to national policy.
Similar criticisms have been raised at other Reform-led councils. Dan Harrison, leader of Leicestershire county council, initially declared the party would be able to “cut council tax” after the May local elections, but later conceded that a freeze was unlikely due to current conditions.
Reform took control of 10 local authorities and became the largest party in three others in May, with leader Nigel Farage promising to tackle “wasteful” spending and scrap net zero and diversity and inclusion initiatives.
Councils are legally required to balance their budgets. Derbyshire council’s proposed £838m budget for the upcoming year is £38m below its stated needs, requiring reliance on the authority’s reserves – a practice acknowledged as “not financially sustainable.”
The plans are expected to be considered by the council in the coming weeks. Cabinet member for council efficiency, John Lawson, stated that next year’s council tax increase is still under review, with a final proposal to be discussed at a cabinet meeting on January 29.
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