Westmorland and Furness Council will on Tuesday launch a public consultation on another 4.99% increase in Council Tax for 2026/27 as the authority faces what it describes as potentially significant reductions in Government funding and rising pressures across frontline services.
The increase—set at the maximum level allowed without triggering a referendum—would see the Band D charge rise to £2,014.73 for the Westmorland and Furness portion of the council tax that also includes town council precept and precepts for Cumbria Police and Cumbria Fire.
Westmorland and Furness council says more than half of its net income now comes from Council Tax and that the Government’s own funding calculations assume councils raise council tax to the full threshold each year.
This year’s budget consultation comes as the council grapples to understand the full impacts of the governments new national Fair Funding Review 2.0 that is expected to redistribute funding between local authorities from 2026/27, with early modelling indicating Westmorland and Furness may face a substantial budget reduction once the provisional settlement is published later this week.
The council has warned that late confirmation of funding and the scale of the potential reduction means it must prepare for wide-ranging savings, a full review of budgets, and potential further consultations later in the year.
Residents will be asked for views on several proposals, including major changes to key local services. These include the introduction of charges for garden waste collections, with two options under consideration: either the first bin remains free and additional bins cost £60 per year, or all bins are charged at £60 annually. New and replacement recycling and refuse bins would also be charged at full cost recovery rates, ranging from £30 to £50 depending on size. Car parking charges across all council-run car parks would rise by around 10%, and a single policy would be brought in giving all Blue Badge holders three hours of free parking when displaying their badge.
The council is also consulting on Home-to-school transport that will see a 15% rise in the cost of spare seats, taking the annual price to £867.03 from Autumn 2026, as demand continues to grow.
Alongside this, a separate consultation next year will examine several discretionary transport entitlements, such as providing free transport to catchment schools instead of the nearest suitable school, free Post-16 SEND transport, and free travel for four-year-olds. These changes, if adopted, would not begin before September 2027 and would be phased in to avoid impacting pupils currently receiving support.
The council is also proposing to reduce Carers Direct Payments from £1,500 to £400, with a discretionary higher amount of £750 in exceptional cases. Officers say this would bring the scheme into line with many other authorities and save £60,000 per year, with new guidance and a revised contract due in April 2026.
The financial pressures come against a backdrop of a forecast £9.973 million overspend for the current year. Directorate budgets are facing £14.5 million of pressures, partly offset by improved Treasury Management performance due to higher interest income and delayed borrowing. The council says it is undertaking a comprehensive review of services, hardship support, fees, grants and long-term restructuring options to ensure financial sustainability.
The consultation will open following Tuesday’s Cabinet meeting, with residents, parish councils, businesses and other stakeholders invited to give feedback before the final budget is considered in by the full council February 2026.
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