Lancashire County Council proposes 3.8% council tax rise
Reform UK-run authority says rise is lowest in over a decade
Lancashire County Council has put forward plans to increase council tax by 3.8 percent starting next year, marking a rise below the maximum allowed by government rules.
The Reform UK-run council claims this is the smallest hike imposed in 12 years, attributing the reduction to running the authority in a more "business-like" way since the party took charge last May.
If approved in February, the rise will see Band D household bills increase by £65.96 to £1,801.75 from April 2026.
Cost allocation
The proposed rise includes a 1.8 percent increase in the core charge, taking advantage of the 2.99 percent limit allowed without requiring a local referendum.
Additionally, the council intends to utilise the full two percent permitted for social care funding, making the total increase 3.8 percent across the county, excluding Blackpool and Blackburn with Darwen.
Council leader County Cllr Stephen Atkinson told the Local Democracy Reporting Service that the calculated rise reflects savings and improvements, many of which are credited to the effective use of artificial intelligence.
“It’s the first time in 12 years that this council hasn’t gone for the maximum council tax rise," County Cllr Atkinson said, adding, "It’s a mindset – you cannot just keep taxing people more and more."
Debates intensify
The proposal has been met with criticism from opposition politicians who have accused Reform UK of backtracking on pre-election pledges to freeze council tax rates.
Leaflets distributed by Reform during last May's elections reportedly contained promises such as "Freeze council tax" and "Reduce waste and cut your taxes.”
Azhar Ali, leader of the Progressive Lancashire opposition alliance, claimed: “Reform bribed the people of Lancashire last year with the promise of cutting waste and freezing council tax.
“A few months later, at the first opportunity to try and help them, they increase council tax by a whopping 3.8 percent whilst there is a cost-of-living crisis hitting people hard across the county.”
Conservative opposition leader County Cllr Aidy Riggott expressed surprise at the rise given Reform’s campaigning pledges, questioning where additional income from government grants and past pension fund savings has been allocated.
County Cllr Atkinson responded by stating that some “branch people” may have referenced a council tax freeze, but the official party position was focused on improving efficiency and saving costs.
Anticipated savings
Since taking control of Lancashire County Council, Reform UK claims to have saved 2.5 percent of the authority’s £1.2 billion budget and predicts a total saving of five percent within the first year through efficiency measures such as reducing agency staff and deploying AI technologies.
Specific improvements cited by County Cllr Atkinson include reducing a backlog of education, health, and care plan requests for young people with special needs and introducing new methods for filling potholes.
He acknowledged that choosing a smaller tax rise would cost the council around £8 million annually but argued that the decision reflects an attempt to ease pressures on residents during a cost-of-living crisis.
“It’s a massive achievement to manage to deal with debt and still come in with a rise one of the lowest in the country,” County Cllr Atkinson said.
Lancashire County Council will vote on the budget and tax proposals next month.