East Riding residents to face 4.99% council tax increase
The 2026-27 budget has been approved today (5th February)
Councillors have approved East Riding Council’s 2026/27 budget at a meeting held on February 5. The budget includes a 4.99% council tax increase for residents.
Much of the discussion surrounding the coming year’s budget was centered around the Government’s recent Fair Funding Settlement which has altered councils’ funding levels. From 2026/27, the implementation of the Fair Funding Review means a permanent reduction in the council’s annual funding, with an overall loss of nearly £62m over three years, £9.2m in 2026/27, £20.3m in 2027/28, and £32.2m by 2028/29.
The council’s finance portfolio holder, Cllr Nigel Wilkinson (Conservative) delivered the Budget for the coming year. He explained the council has been able to produce a balanced budget despite the being “in a level of financial challenge and uncertainty, not previously experienced in recent years.”
2026/27 council tax bands
Band A – £1,309.65
Band B – £1,527.92
Band C – £1,746.20
Band D – £1,964.47
Band E – £2,401.02
Band F – £2,837.57
Band G – £3,274.12
Band H – £3,928.94
Council house rents will increase by 4.8%, in line with government guidance of CPI inflation (3.8% in September 2025) plus 1%. This will lead to an increase of £4.81 per week for an average social rent, Cllr Wilkinson told the chamber.
As well as increasing council tax, the council has had to use £7.6m of flexible capital receipts. It is the first time the council has made use of the measure, which allows councils to use money from selling assets such as land or properties, to fund transformational and reform activities. This is being done to protect remaining reserves.
Cllr Wilkinson also set out the council’s main priorities for the year ahead:
- To support economic growth and resilience by attracting new investment
- Maintaining and enhancing our towns, villages, and high streets
- Reducing inequalities
- Equipping people with the skills to meet the demands of the local economy
- Supporting transport connectivity for residents and businesses
- Continuing to improve digital connection and skills to capitalise on the technology, and opportunities that brings
- Strengthening the rural economy
- Expanding our tourism offer
Cllr Anne Handley, the leader of the council said: “Our ambition is to transform the East Riding into a place that is not only beautiful and liveable, but also thriving, sustainable and future ready with the best possible outcomes for residents. We are strongly focused on taking action to address the huge financial challenges and ever-rising demand for services that all councils currently face, through a focus on prevention, early intervention and transformation.
“We are transforming how we work, to operate a learner, smarter council. We will also ensure that the opportunities across the East Riding are seized, providing a platform for inclusive, sustainable growth over the next decade. However, with ever-shrinking budgets from government, and the significant impact of the Fair Funding Review, we unfortunately cannot deliver the priorities for residents without increasing council tax.”
The leader of the opposition, the Liberal Democrats’ Cllr Denis Healy, called out what he described as “procrastination” of change within the council. He said: “My concern is that this council, under decades of Conservative leadership, has drifted into a position where transformation is being driven by financial crisis rather than political choice.”
The leader of the opposition added: “Other councils reviewed their operating models years ago, to be able to deal with the financial challenges ahead.” He later said the council is now in a situation where “a going share of its energy is taken up by managing itself, when it should be focussing on residents.”
All but six councillors voted in favour of the council tax increase. The council’s two Reform UK councillors rejected the raise alongside three independent councillors.