Council Tax Cut Set To Be Considered By HDC

The leader of Harborough District Council has revealed plans that could see council tax cut by five per cent.

The move would save the average Band D household just over £9 a year and is set to form part of the council’s wider budget proposals, which are expected to be considered in the New Year.

Liberal Democrat leader Phil Knowles said the aim is to ease cost-of-living pressures on residents while continuing to protect key local services.

Speaking to HFM, Cllr Knowles said: “Our plan is to reduce Harborough District Council’s section of council tax by 5%, a proposal that will help every household in the district.

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

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

Cllr Phil Knowles

It is extremely rare for a council to reduce its overall council tax rate and the announcement comes despite concerns over future government funding for the council.

Provisional figures show a ‘fair funding allocation’ of £12.2 million for 2026/27, giving Harborough District Council ‘core spending power’ of £22.6 million.

However, that figure is expected to fall to £22.4 million by 2028/29 as the fair funding allocation is reduced – a drop of 15.8 per cent on 2024/2025, which is the largest reduction faced by any council in the country.

Despite this, Cllr Knowles said the settlement was better than initially feared and that the council remains confident it can balance supporting residents with maintaining essential services.

The government is using a new funding formula to divert cash to the most deprived areas, but Harborough’s Conservative MP Neil O’Brien says Harborough is losing out:

HDC finance officers are still going through the details of the announcement ahead of a final decision in the New Year.

Minister of State for Local Government and Homelessness, Alison McGovern said: “Deprivation doesn’t happen by accident – it’s the result of years of broken systems and wrong priorities.

“This settlement tackles that head-on by directing funding where it’s needed most.

“By fixing the link between funding and deprivation, we’re giving local areas the tools to create opportunities, support families, and rebuild the services that hold communities together.

“This is how we deliver a fairer Britain where everyone has the chance to succeed.”