Reform-led Worcestershire Set for England's Largest Council Tax Increase
Worcestershire County Council, under Reform UK leadership, is poised to implement England's most significant council tax rise this April, following government approval for an increase of up to 9%. This move starkly contrasts with the party's national priority of maintaining low council taxes, potentially causing political embarrassment.
Government Grants Permission for Cap-Busting Rises
Worcestershire is among a select group of authorities permitted to exceed the standard 5% cap on local rate increases from April. The government has sanctioned these hikes, arguing that these areas have historically low council tax rates, and the rises will align household bills with average levels across England.
The approved councils and their maximum increases include:
- Bournemouth, Christchurch and Poole: up to 6.75%
- Warrington: 7.5%
- Trafford: 7.5%
- Worcestershire: 9%
- Shropshire: 9%
- North Somerset: 9%
- Windsor and Maidenhead: 7.5%
Embarrassment for Reform UK and Local Fallout
The cap-busting tax hike in Worcestershire is particularly awkward for Reform UK, which has championed low council tax as a key policy. This has already led to one local Reform councillor resigning from the party in protest, highlighting internal dissent over the decision.
Worcestershire's Reform leadership has openly admitted that the council's finances are "in a mess", attributing the crisis to previous Conservative mismanagement. In a bid to avoid effective bankruptcy, the council has applied for government permission to borrow £71m from April.
Government Announces £5bn Debt Write-Off for Send Services
In a related development, ministers have revealed plans to clear approximately £5bn of historical debts accumulated by English councils due to overspending on special educational needs and disability (Send) services. This intervention aims to prevent 90% of councils from facing effective bankruptcy by 2028, according to council leaders.
The debt write-offs will be conditional on local authorities agreeing to implement Send updates in line with forthcoming government plans, expected to be detailed in an imminent white paper. However, councils like Hampshire County Council will still retain tens of millions in debt, as English councils' total accumulated Send debts are projected to reach £6bn by April.
Uncertainty Over Future Send Overspends
It remains unclear how billions of pounds in expected Send overspends between April 2026 and April 2028 will be managed. Ministers have stated they will "continue to take an appropriate and proportionate approach, though it will not be unlimited", leaving future funding arrangements ambiguous.
Reactions from Local Government Leaders
Louise Gittins, chair of the Local Government Association, welcomed the partial debt write-off, noting it removes the immediate threat of insolvency for many councils. She emphasised, "This is recognition that these costs are not of councils' making and have accrued due to a broken system that is urgently in need of reform. However, fully writing off historic and future high needs deficits remains critical."
Sir Stephen Houghton, chair of the Special Interest Group of Municipal Authorities, also praised the government's announcement of an extra £440m in recovery grants for economically deprived areas, stating, "We strongly welcome the additional money being targeted to places with significant deprivation and needs."
Contrast with Other Reform-led Councils
In contrast to Worcestershire, Reform-led Warwickshire County Council recently attempted to push through a lower-than-expected 3.89% council tax rise. However, this effort failed after opposition parties argued it would lead to further service cuts and jeopardise the council's viability.
This situation underscores the financial pressures facing local authorities across England, as they balance tax policies with essential service provision amid rising costs and historical debts.
