Rutland Slashes Council Tax Hike in Half Following Government U-Turn

Rutland Slashes Council Tax Hike in Half Following Government U-Turn

By Rutland Democracy Reporter Monday, 16 February 2026

In a dramatic turn of events for local taxpayers, Rutland County Council (RCC) has seized on a last-minute shift in national funding to propose a Council Tax increase of just 2% half of the figure originally projected at the start of the year.

The breakthrough comes as the Government finally addressed a long-standing "black hole" in school funding that has plagued local authorities for years. Following an announcement late on Monday, 9 February, Rutland County Council moved quickly to recalculate the budget, passing the financial relief directly to residents.

For years, Rutland like many UK councils has been caught in a vice. The authority is legally required to support children with Special Educational Needs and Disabilities (SEND), yet the Dedicated Schools Grant (DSG) provided by the Government has consistently failed to cover the actual costs.

Before this week, Rutland was facing a staggering £5 million deficit in this area alone. However, the new High Needs Stability Grant changes the math, The Government will now fund 90% of Rutland’s verified DSG deficit as of March 2026, Further support is guaranteed for deficits arising in 2026/27 and 2027/28.

This move effectively reimburses the council for costs that Westminster is responsible for, significantly lowering Rutland’s financial risk profile.

While the "General" Council Tax increase has been slashed to 0.0%, the council still intends to move forward with a 2% Adult Social Care precept.

This is a strategic move. Rutland remains one of the most underfunded councils in the country, receiving only £640.28 per dwelling in general grants compared to a national average of £1,413.94. Consequently, the council relies on Council Tax for nearly 80% of its total funding.

Expenditure Type	Original Proposal	New Proposal
General Council Tax	~2.0%	0.0%
Adult Social Care Precept	2.0%	2.0%
Total Increase	~4.0%	2.0%

Council leaders noted that while many other authorities are using this new grant simply to stay afloat, Rutland’s "careful and responsible financial management" over previous years has allowed them to use the surplus to ease the burden on local households.

The Council still faces significant headwinds, including inflationary pressures expected to hit £5.6m by 2028/29, but the immediate outlook is the most stable it has been in years.

The revised budget isn't a done deal just yet. Residents can expect two key meetings this month:

• Tuesday, 17 February (10:00 AM): Cabinet meets to formally receive report 26/2026, which outlines the implications of the new grant.

• Thursday, 26 February: Full Council will meet to make the final decision on the budget and the Medium-Term Financial Strategy.

Both meetings are open to the public, and agendas can be viewed at www.rutland.gov.uk/meetings.