Luton residents set to face 4.99% council tax hike
Luton Council says it has agreed on significant investments to protect services and support the community
Luton Borough Council is set to raise tax by 4.99% in April after councillors agreed a budget for 2026/27 – it is the highest amount the authority can raise tax without holding a local referendum.
The council promises to use over £30 million in additional investments to safeguard frontline services and assist vulnerable people.
It also includes a substantial £123.8 million building and improvement programme aimed at developing homes and enhancing the town's infrastructure.
Approximately 500 new homes will be constructed, with The Stage development in the town centre expected to provide 292 homes alongside shops, business space, and a new public square.
Investment also targets public space enhancements, with up to £12 million allocated for improvements in the town centre, ensuring visible changes across communities.
Additionally, the budget sets aside funds to construct two new schools dedicated to children with special educational needs and disabilities (SEND).
The council has committed £5 million for further community improvements, refurbishing all 60 council-managed playgrounds and upgrading sports and leisure facilities.
A major road safety programme around schools, supported by new traffic enforcement cameras, is also included.
A £29 million package will safeguard and enhance core services, eliminating cuts to current services and providing additional funds to meet high demand pressures in children's services and adult social care.
Cllr Rob Roche, Portfolio Holder for Finance at Luton Council, said, “This budget comes at a time of economic uncertainty, but our priorities are clear - protect vital services and invest in Luton’s future.
“Residents have told us they care about jobs, housing, safety, cleaner streets and opportunities for young people; and this budget delivers on those.
“With this budget we aim to keep the council financially stable, support vulnerable residents, manage growing social care demand and improve the parks, roads and community facilities people rely on every day. By investing responsibly and strengthening our financial resilience, we are making every pound work harder for Luton.”
The increased council tax is paired with continued efforts to support those facing financial challenges through the Council Tax Support Scheme, Hardship Fund, and a new Resilience Fund.