Nationally, local authorities continue to face significant financial pressures while demand and cost of statutory services continue to rise; increasing the challenge of delivering transformation and improvements in the delivery of services for residents and businesses in Herefordshire.

The proposed budget and strategy for 2026/27 builds on the prudent approach and robust financial management now embedded across the council: to preserve and protect the council's future financial resilience and sustainability through robust and reliable management of the revenue budget and capital programme and delivery of realistic, achievable and recurrent savings on time and in full.

Transformation

The council continues to invest in transformation activity to support improvement of its services: of which the improvement of children’s services remains a key corporate priority.

Transformation efficiencies and savings will be achieved through improvements to systems, processes and technology; using digital solutions and technology to improve the customer offer and maximise opportunities to work with communities and partners alongside maximising income through service cost recovery.

Council Tax

The Ministry of Housing, Communities and Local Government (MHCLG) confirmed on 17 December 2025 that the Council Tax referendum limits would remain unchanged for 2026/27: councils with social care responsibilities are permitted to increase Council Tax by up to 3% with an additional 2% to meet adult social care pressures, without a local referendum.

Our priorities

The council budget ensures that corporate and service plans are developed in the context of available resources and that those resources are allocated in line with corporate priorities set out in the Council Plan, "Delivering the best for Herefordshire in everything we do."