Reform-led Derbyshire County Council is considering a council tax increase of up to 5% as it seeks to close a significant budget gap.

The authority is forecasting a £37.8m shortfall in 2026–27, driven largely by rising demand and escalating costs, particularly in adults’ and children’s social care.

To address the gap, the council has published proposals to deliver £22.4m in savings. A further £2.5m would be generated through changes to the way the council operates, alongside £12.9m in savings from corporate budgets.

The council is also considering increasing council tax by 4.99% — the maximum rise permitted without triggering a local referendum — despite previous criticism by Reform of council tax increases.

In its budget proposals for 2026–27, the authority states that, as a rural council, it has ‘suffered as a result of the reforms to the settlement that have been introduced’.

The document adds: ‘In order to maintain funding levels there will be a need to set increases in council tax at the maximum permitted level (without invoking a referendum).’

Derbyshire County Council’s cabinet member for Council Efficiency (DOGE), Cllr John Lawson, said the proposed council tax increase remains under review following confirmation of the local Government funding settlement last month.

‘Next year’s council tax increase is still under review following the local government funding settlement which was confirmed last month, and there is still work to do as we look at the numbers across the board,’ he said.

‘No decisions have been made as yet, and a final proposal will be put to Cabinet to discuss at its meeting on 29 January. This report will be public on 21 January.’

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