In a significant financial move, Worcestershire County Council has been granted special permission to implement a council tax increase of up to 9% starting in April. This decision is particularly striking given the council’s affiliation with Reform UK, a party that has pledged to reduce tax rates. The council cites a “financial emergency” as the primary reason behind this unprecedented rise, which is set to be the highest in England.
Financial Emergency Declared
The council’s leadership, under the newly appointed head of strategic delivery, operations, governance, and efficiency (Doge), has characterised the current fiscal situation as dire. Following a written statement from local government minister Alison McGovern, it has emerged that Worcestershire joins six other councils in receiving authorisation to exceed the standard 5% cap on council tax increases. Other councils benefiting from this flexibility include Shropshire and North Somerset, both of which can also raise taxes by 9%.
Councillor Rob Wharton, the cabinet member responsible for finance, has elaborated that each 1% increase in council tax is projected to yield an additional £3.6 million for the local authority. He stressed the necessity of this increase to sustain essential services amid rising demands and costs related to social care.
Internal Discontent and Political Fallout
The decision to raise taxes is not without its controversies. Worcestershire operates under a minority administration, with Reform UK holding only 25 of the 57 council seats, necessitating cooperation with other parties to pass the budget. This has led to internal strife, including the resignation of Reform councillor Daniel Taylor from Redditch East, who has since pledged to serve as an independent. The situation has sparked criticism from local Conservatives, who have launched a petition calling for a reversal of the tax hike, asserting that Reform’s initial promise was to lower taxes.
Adding to the complexity, the council has recently appointed a dedicated Doge cabinet role aimed at improving efficiency and reducing waste. Councillor Nik Price, the first to hold this position, acknowledged the inherited financial crisis the council is facing.
Broader Implications for Local Authorities
Worcestershire’s predicament is not an isolated case. Several Reform-led councils across the country are contemplating similar tax increases. Kent County Council has proposed a 3.99% rise, while others, including Derbyshire and Leicestershire, have indicated they may implement a 5% increase. The overarching trend suggests that many local authorities are grappling with financial pressures that compel them to seek additional revenue through tax hikes.
In her announcement, McGovern underscored the government’s recognition of the challenging financial landscape for some councils, attributing it to the legacy of prior funding systems. However, she reiterated that the decision to raise council tax ultimately lies with the local authorities themselves.
Why it Matters
The approval of a 9% council tax increase in Worcestershire reflects the broader financial challenges that local governments face, particularly those aligned with reformist political agendas. As councils navigate rising demands for social services and financial sustainability, such tax increases could reshape the political landscape, influencing public sentiment and party alignments. The situation in Worcestershire may serve as a cautionary tale for other councils and political parties that advocate for fiscal conservatism amidst growing economic pressures.
