Worcestershire council tax set to increase by nearly 5%
In a draft report, a 4.99% increase in Council Tax was also proposed
Last updated 17th Jan 2025
Council tax is set to increase in Worcestershire, as the local authority looks for ways of balancing its books.
Councillors were told a “tsunami of demand pressures” had taken the council to the edge of bankruptcy at a cabinet meeting on Thursday.
Cabinet members have approved a draft budget worth £495 million but the council faces a funding gap of £33.6m for 2025/26, rising to £43.6m the following year.
Despite using £15m worth of reserves to plug the gap, the council will have to effectively declare itself bankrupt if it doesn’t get exceptional financial support from the government.
This means getting permission to sell off council assets or borrow money.
Cabinet will also recommend to full council a council tax increase of 4.99 percent. This is made up of two percent for adult social care and 2.99 percent for other council services.
For an average Band D property, the change would equate to an annual council tax increase of £76.79 or £1.48 a week.
The council says it would benefit from £21.366m in increased council tax income.
At the moment, about three quarters of Worcestershire County Council’s budget is spent on adult social care, children’s services and home to school transport.
Deputy leader Marcus Hart said the council is facing the most “exceptionally challenging financial situation” he had seen in 20 years.
“The reality is we need to get maximum council tax,” he said.
Karen May, cabinet member for communities, said: “We are having to make tough decisions and look at assets” but said prevention is key to reducing demand on public services.
Adam Kent, cabinet member for economy and skills, said: “We’ve got a tsunami of demand pressures from children’s and adult social care, home to school transport, and all set against a backdrop of constrained budgets, rising costs and a lack of systemic national reform.”
He said recruiting more foster carers would help balance the budget.
The Green Party’s Matt Jenkins said the council was in a “very embarrassing position”.
“We took a zero percent council tax increase three years in a row and I don’t think that was prudent,” he said.
“I fully accept these issues are happening across many county councils but we seem to be in a worse position than most others.”
He asked leader Simon Geraghty if he would apologise and accept the council’s financial position was not down to “external factors only”.
Cllr Geraghty said the council was, until recently, balancing its books without an overspend.
“In that case, would you increase council tax for the sake of it?” he said, adding that around 30 local authorities were believed to be in discussions with the government about getting exceptional financial support.