4.99% council tax increase agreed at ERYC budget meeting
East Riding of Yorkshire Council has approved the budget for 2026/27 at the annual Full Council budget setting meeting held on Thursday, February 5.
The council said the budget reflects the permanent reduction in the council’s funding resulting from the Fair Funding Review, alongside increased demand for all council services, particularly in children’s and adults’ social care.
It said that despite the reduction in Government funding, a balanced budget is achieved through a combination of savings, transformation activity, a 4.99% Council Tax increase, asset sales, and targeted use of reserves to support financial stability while permanent savings are delivered.
The Council Tax rise will see those in a Band A property pay an extra £62.25 a year, and those in a Band D property pay an additional £93.37 per year.
The Council Business Plan 2026/27 sets out how the council will achieve the priorities for the East Riding for the coming year and beyond, within the context of the financial challenges. The Plan includes a 10-year vision, highlighting the many strengths and opportunities, to create and provide a safe and thriving place to live, work and visit.
Councillor Anne Handley, East Riding of Yorkshire Council Leader said: “Our ambition is to transform the East Riding into a place that is not only beautiful and liveable, but also thriving, sustainable and future ready with the best possible outcomes for residents.
“We are strongly focused on taking action to address the huge financial challenges and ever-rising demand for services that all councils currently face, through a focus on prevention, early intervention and transformation. We are transforming how we work, to operate a learner, smarter council. We will also ensure that the opportunities across the East Riding are seized, providing a platform for inclusive, sustainable growth over the next decade. “However, with ever-shrinking budgets from government, and the significant impact of the Fair Funding Review, we unfortunately cannot deliver the priorities for residents without increasing council tax.”
However, Councillor Denis Healy, leader of the Liberal Democrat Group and the official opposition at the council, issued a scathing assessment of the local authority’s financial outlook.
He warns that residents face a “double blow” of reduced central Government funding and a local financial strategy that relies on high-risk, unproven “transformation” schemes.
Addressing the council during the pivotal budget debate, Cllr Healy demanded greater transparency, urging colleagues to move beyond political rhetoric and address the “choices and consequences” that will soon impact the daily lives of every resident.
“Councillors have a duty to explain clearly what this budget means for our communities, not simply repeat headline claims,” Cllr Healy said. “Behind the jargon and the 160-page budget pack are decisions that will be felt in our classrooms, our care homes, and on our streets.”