High Peak Borough Council approves 2.99per cent council tax increase and 2.7per cent rent rise

The Labour-controlled council gave the go-ahead to a Budget plan for the 2025-26 financial year and to its Medium-Term Financial Plan for 2025-26 to 2028-29 at a meeting at The Pavilion Gardens, in Buxton, on February 27, after considering the Government’s financial funding settlement for the authority.

It set its budget for providing essential services to residents, businesses and visitors at £15.1m for the coming financial year with an approved council tax increase of 2.99per cent or equivalent to £6.51 setting Band D payments at £224.19 for 2025-26 and the council’s housing tenants’ rents will rise by 2.7per cent in line with Government limits – making the average rent £86.91 per week.

Cllr Alan Barrow, Executive Councillor for Corporate Services and Finance, said: “The council budget funds the essential everyday services our residents and businesses rely on including waste and recycling collections, our leisure centres, parks and green spaces, and supporting our town centres and villages to thrive.

“It’s always a careful balance to ensure we can afford the continued provision of high-quality services whilst being mindful to keep the costs to our tax payers as low as possible. If anyone needs help with paying their council tax, I would urge them to contact the team at the council as support may be available.”

Government has introduced a Funding Floor grant at £721,280, a Recovery grant at £28,170, a New Homes Bonus at £49,780, and Revenue Support Grant at £152,760 for 2025-26 and its settlement for the council also indicated there will be Employer National Insurance contributions funding but the amount has not yet been confirmed.

High Peak Borough Council has stated the level of reserves are adequate, however the volatility of the national economic situation remains challenging and unpredictable and the potential impact of interest rates and inflation will continue to be monitored.

The Labour Government’s Local Government Reorganisation plans which include potentially creating unitary authorities in two-tier local authority areas in England like Derbyshire by introducing mayors and merging district and borough councils under a devolution White Paper are also having to be assessed by High Peak Borough Council.

The council is also wary that any changes by Government to local authority core funding and the Business Rates Retention Scheme, including resetting the baseline income, may have significant impacts on the council’s finances.

High Peak Borough Council expects to incur costs higher than anticipated originally after setting the MTFP last year with an increase of three per cent anticipated with pay awards during the second half of the MTFP and although inflation has reduced from the high levels of recent years, the council feels inflation remains volatile and unpredictable.

However, the council says it has established a balanced 2025-26 budget for the authority on both the revenue and capital side but greater uncertainty and risk is expected in the MTFP for future years.

The council states the forecast predicts a balanced budget position by 2028-29 with a reduced use of reserves and the final Housing Revenue Account budget proposal for 2025-26 provides for a net budget of £17,611,580 based on a council dwelling rent increase of 2.7per cent which is the level at which the Government restricted the 2025-26 rent increase for existing tenants.

High Peak Borough Council’s Capital Strategy and Capital Programme have also been updated and the council states these will allow for additional investment in priority areas.

And the Medium Term Financial Plan, according to the council, includes an updated General Fund Capital Programme of £37,271,110 over the period 2024-25 to 2028-29 and an HRA Capital Programme of £39,421,100 over the same period.

High Peak Borough Council formally approved during its February 27 meeting a Band D Council Tax of £224.19 for 2025-26 with an increase of £6.51 or 2.99per cent and it approved that all dwellings rents should increase by 2.7per cent, increasing the average rent from £82.84 to £86.91 per week.

The council also approved the General Fund Budget for 2025-26, the revised MTFP for 2025-26 to 2028-29, the 2025-26 Capital Strategy, fees and charges for 2025-26, the Procurement Forward Plan for 2025-26 for contracts and noted that the Chief Finance Officer’s view that the level of reserves are adequate.

Cllr Barrow added: “Over the coming year we will, as always, seek ways to maximise efficiency whilst maintaining the value for money services everyone in the High Peak deserves.”

Also, from April 1, this year, the council stated that second home owners will have to pay 100per cent council tax on their properties following a decision made by the council last year.

High Peak Borough Council says this is aimed at encouraging owners of these properties to use them as main homes for local people rather than as second homes.

The borough council collects council tax on behalf of the county council, police and fire authorities and town and parish councils but only retains around 10per cent of the total.