HDC Could Become Only Council To Cut Council Tax

Harborough District Council could become the only local authority in the country to reduce council tax, under proposals to be discussed by its Cabinet.

The plan would cut the charge by 5%, saving residents in a Band D property £9.16 a year and bringing 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 proposal 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 warn the cut would reduce the council tax requirement to £7m — £260,000 less than in 2025/26.

If the council raised tax by the maximum 2.99% instead, it would generate around £329,000 more income.

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.

Cllr Knowles said: “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.”

The proposals will be considered by Cabinet next week.