The financial future of Rutland's unitary council has 'never been more uncertain' says the authority as it proposes to hike council tax by five per cent. 

Setting out its budget for the coming financial year, the Liberal Democrat-run authority, which has been in a cost-saving drive for the past few years, has said that the Labour government has made its financial future less predictable and accused the government of delivering a late 'shock' grant removal to rural councils. 

Rutland's council taxpayers will be asked to pay an additional 4.99% from April, increasing the band D rate by £105 per year and taking it to £2,218.95. 

The overall budget for the 2025/26 financial year will be £55.5 million, an increase from the £51.7 million current financial budget. This rise is due to increased costs of existing services plus an increased demand, most notably in the adult social care costs. 



Leader of Rutland County Council Gale Waller is expected to approve the budget (Photo: Rutland County Council)

The authority's cabinet, led by Cllr Gale Waller (Lib Dem – Normanton), is expected to approve the budget when it meets on Tuesday ahead of a final sign off by the full council later this spring. 

The budget report sets out the issues it says have been created for rural authorities due to the government's rejigging of grants, which has seen the rural services delivery grant scrapped. This used to provide £1.2 million annually to the authority. The report adds it is unlikely any new grants proposed will help Rutland. 

The majority of the services Rutland County Council provides are funded by local council tax levies (79% of its income) while the national average for this is 56%. 

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The report says: "While increasing demand and economic uncertainty remain a constant for local government, the new national government has created greater uncertainty for the council to deliver its financial sustainability priority. 

"From significant reductions in general grant announced as part of the provisional settlement at the end of December 2024, and with future local government funding reform indicating that grant distributions will be based on levels of deprivation for residents, to once-in-a-generation local government reorganisation, the future financial outlook for the council has never been more uncertain. 

It continues: "For the council to receive such a 'shock' to its estimated funding levels at such a late stage in the budget-setting process does not aid proper strategic planning for financial sustainability."  

The authority is aiming to make savings of £5.6 million during the 2025/26 financial year and hopes to generate an extra £2.8 million from the increased council tax rise and business rate increases. It wants to bring in an extra £1.1 million through fees and charges. 

The council says £80,000 could be saved by changing how it books beds when arranging care packages for older people; £280,000 could be gained in additional income from fees and charges for highways services; £363,000 from a new waste transfer station contract and income from recyclable materials,  and £273,000 in additional interest generated from cash balances and a revised interest rate forecast. 

The budget consultation will begin next week and runs until early February.