Council Cuts Council Tax By 5%

Harborough District Council has approved a cut in council tax and could become the only local authority in the country to do so.

The 5% reduction will save residents in a Band D property £9.16 a year and bring the council’s share of the bill down to £174.13.

Liberal Democrat leader Phil Knowles said the move would help ease cost-of-living pressures on residents.

The decision is unusual because central government assumes councils will increase council tax by the maximum allowed when calculating funding, which in Harborough’s case is 2.99%.

Council finance papers warned the cut would reduce the council tax requirement to £7m — £260,000 less than in 2025/26.

However, the council says it can afford a reduction because it has a projected surplus revenue budget of £1.5 million for 2026/27 after the use of earmarked reserves, meaning either a freeze or a cut could be funded in the short term.

An amendment by the opposition Conservative group to freeze the current tax rate was defeated.

Cllr Knowles said: “We know that households are under pressure and we want to ensure we take positive steps.

“This five per cent reduction is a major investment in our community, alongside freezing green bin charges and car parking fees.”

Despite the reduction, residents’ bills will go up overall, as the majority of the share of council tax paid by people in the Harborough district will go to Leicestershire County Council, which has approved a 2.99% increase in its precept. Other portions fund the police and fire service.