Rutland Braces for Council Tax Rise Amid "Unprecedented" Funding Cuts

Rutland Braces for Council Tax Rise Amid "Unprecedented" Funding Cuts
By the Rutland Democracy Reporter

Rutland County Council is set to navigate its most challenging financial landscape in years, as the 272nd meeting of the Council on February 26th prepares to address an "unprecedented" level of uncertainty in government funding.

The meeting at Catmose will be the Integrated Budget Plan (IBP) and Medium-Term Financial Strategy (MTFS) for 2026/27 to 2028/29. Despite initial hopes for a funding boost from the "Fair Funding Review 2.0," recent government policy shifts have instead signaled a stark 19.9% loss in funding compared to the previous year.

The "KLOE" Approach to a 5% Tax Increase

To bridge the widening fiscal gap, the Council is proposing a 5% increase in Council Tax. This rise which includes the application of a second homes premium is projected to generate approximately £36.9 million in the coming year, rising to over £40 million by 2028/29.

Council leaders are employing a new "Key Lines of Enquiry" (KLOE) framework to manage this transition. This structured approach aims to identify efficiencies and "invest to save" opportunities rather than relying on short-term fixes. Key proposals include,

Highways Realignment A projected £700,000 in savings through reduced demand and commissioning efficiencies.

Reallocating funds to address cost pressures from the National Living Wage and higher Employer National Insurance contributions.

Prioritising capital projects that offer ongoing revenue savings, such as waste infrastructure improvements.

Despite the budget tightening, the Council remains committed to its Corporate Strategy refresh, which focuses on supporting the most vulnerable and tackling the climate emergency.

Major capital projects on the table include,

The "Local Link": A health and care campus next to Rutland Memorial Hospital designed to join up support and bring services closer to home.

Investment in X-ray services at Rutland Memorial Hospital to reduce external referrals.

A new route between Oakham and Rutland Water to promote sustainable transport.

Initial phases of a program to create a "sustainable cultural hub" through improved museum facilities.

The budget proposals come against a backdrop of significant public concern. Feedback from recent consultations revealed deep-seated frustration among some residents, with many citing "potholes in the roads," a lack of local medical assistance, and the feeling that "our input is totally ignored". One resident described the recurring tax hikes as a "fait accompli," while others questioned the £6 million earmarked for the Rutland Museum.

The meeting, chaired by Councillor A. Brown, will be recorded and published for public viewing, though seating in the Council Chamber remains limited.

Following this meeting, the Council is scheduled to meet again on Thursday, 26 March 2026.