East Herts Council to impose cuts and price increases to balance ‘high risk’ budget
East Herts Council’s new budget is on a knife edge, with just a £6,000 surplus forecast for the next financial year.
To stay in the black, the district authority – responsible for big-ticket services like refuse collection, planning, housing and parking – needs to save £2m in 2025-26.
On Tuesday evening (Jan 7), EHC’s Green and Liberal Democrat cabinet is due to meet and discuss the draft budget for the new financial year, which starts in April, and the medium-term financial plan (MTFP) to 2035.
In a report, Cllr Carl Brittain, executive member for financial sustainability, warned: “Although this appears to be a balanced budget, the underlying need to deliver every saving cannot be stressed too much.
“There is a high risk that these savings may not materialise and there is a limited amount of reserves.
“The MTFP 2026-27 onwards is showing a budget gap of £1.7m that we currently haven’t been able to bridge. Transformation and savings proposals need to be developed to set a balanced budget for future years.”
Shocks ahead for residents include a proposed 2.98% increase in the district’s share of council tax bills, taking its demand of band D households to £201.04, up £5.52 from this year’s £195.52.
To stay solvent, district councillors have come up with a raft of savings including cuts to community grants, a reduced contribution to Harlow and Gilston Garden Town and less training for members.
They want to raise £300,000 by ramping up garden waste charges – the bill for having a bin is set to rise by £10 to £59 a year.
Also, the administration has reviewed the revenue it hopes to earn from Hertford’s £30m new theatre, BEAM.
Cllr Brittain’s report says: “A review of the business plan for BEAM has been undertaken by external consultants. The net cost of services has been updated, with a reduced surplus position from £1.8m to £200,000 in 2025-26.”
The council is working to halve its £300,000 business rates liability at the vacant Charringtons House in Bishop’s Stortford’s Causeway, down to £150,000 in 2026-27.
Amid the swingeing cuts, the executive has rejected any change to Citizens Advice East Herts’ £100,000 annual grant. Members also snubbed parking charges for EHC staff, which could have raised £3,000.
The budget cannot be finalised until the Local Government Finance Settlement is confirmed nationally and the council learns how much of the estimated £347,000 cost of increased employer National Insurance contributions it must cover.
A revised draft will be presented to the council’s audit and governance committee on January 29.
EHC’s council tax precept accounts for less than 9% of the overall bill for households each April. More than three-quarters (76.6%) of the £2,200.66 bill for a band D home in Stortford in 2024-25 went to Hertfordshire County Council (£1,685.75), 11.4% to the Hertfordshire Police and Crime Commissioner (£251) to finance policing and 3.1% to the town council (£68.69).
