Derbyshire County Council, led by Reform UK, is exploring a council tax increase of up to 4.99% as it faces a projected £37.8 million budget shortfall for 2026–27.
Rising demand and escalating costs in adults’ and children’s social care are driving the deficit.
To tackle the gap, the council has outlined proposals aiming to deliver £22.4 million in savings, alongside £2.5 million through operational changes and a further £12.9 million from corporate budget efficiencies.
Despite Reform UK’s previous criticism of council tax hikes, the authority is considering the maximum allowable increase of 4.99% — the threshold at which a local referendum would be required.
The council’s budget report for 2026–27 notes that Derbyshire, as a largely rural area, has been adversely affected by recent government funding reforms. It adds that maintaining essential services may necessitate increasing council tax to the permitted limit.
Cllr John Lawson, Derbyshire County Council’s cabinet member for Council Efficiency, said the proposed rise remains under review following the confirmation of the latest local government funding settlement.
“Next year’s council tax increase is still under review as we assess the settlement and examine the full budget picture,” he said. “No decisions have been made yet, and a final proposal will be presented to Cabinet on 29 January. The report will be publicly available from 21 January.”
The proposed increase comes as the council balances growing social care demands with limited funding, highlighting ongoing challenges for rural authorities.
