Westmorland and Furness Council set to rise council tax by 4.99 per cent.

Cabinet members for Westmorland and Furness Council are to launch a budget consultation for the 2025/26 financial year which includes plans to increase council tax by 4.99 per cent.

The proposed rise in council tax consists of a 2.99 per cent general increase as well as a two per cent increase for adult social care.

Councils in England, which provide adult social care services, can raise tax rates by up to five per cent. Local authorities who want to increase council tax above this level must hold a referendum on the proposal.

According to a report prepared for the cabinet, the council’s medium term financial plan includes proposals to increase council tax each year by 3.99 per cent however the proposed additional one per cent increase will raise around £1.7 million in funds for the local authority.

The report says: “It is important to state that Council Tax accounts for over half of the net income for the Council and is therefore the main source of income for the council.

“Raising council tax each year is an important way to fund the challenge of rising costs both from an inflationary perspective and also from a demand perspective.”

If the proposed 4.99 per cent increase is approved, the council’s total budget income from council tax will be £184.53 million.

The proposed increase results in a Band D council tax fee of £1,918.97 in the 2025/26 financial year, which represents an annual increase of £91.21.

Previously approved plans from the council on a 100 per cent council tax premium on second homes will come into force in April 2025 and is expected to raise £10.6 million in additional revenue for the Liberal-Democrat led authority.

The report concludes: “The Council has a responsibility to be financially sustainable and that means identifying permanent changes to the future budget to achieve a balanced position whilst also responding to the growing pressures from demand and legislative changes and focus the spend on areas that support our priorities and vision.

“We also need to make the best and most efficient use of our resources to deliver ongoing improvements to services for our residents and communities and demonstrate that the Council can deliver value for money.”

Cabinet members for Westmorland and Furness Council are set to launch the consultation when they meet on December 17 at Barrow Town Hall.