65453046

Council Approves Nearly 3% Tax Increase to Fund £1 Million in Projects from Reserves

Forest of Dean District Council in Gloucestershire has approved a 2.99 percent increase in council tax starting this April, raising the annual charge for a Band D property to £218.29—an increase of £6.34. This budget decision accompanies plans to spend over £1 million from the council’s reserves on a range of projects over the next two years.

The rise in council tax will help fund essential local services including rubbish and recycling collection, planning, environmental initiatives, business support, housing, leisure centres, and public parking. However, residents’ overall council tax bills will be higher when combined with charges from Gloucestershire County Council, the police, and parish councils where applicable.

Despite the increase, council reserves are forecast to decrease from £12.6 million in March 2026 to £10.4 million in March 2027. Finance Cabinet Member Andy Moore (Green Party, Newnham) explained that the council faces a real-term funding reduction over the next three years, excluding inflationary pressures.

READ MORE: I Tried Brown Sauce from Aldi, Lidl, M&S and More — A 99p Bottle Rivalled HP

READ MORE: Gloucester City’s Harry Pinchard Signs with National League South Leaders Dorking Wanderers

“For the 2026/27 financial year, the council proposes a net budget requirement of £13.47 million,” Moore stated. “Of this, £6.46 million will come from government funding and business rates, while the remaining £7.01 million will be supported by council tax.”

Moore emphasized that growth-related projects will be funded on a one-off basis through reserves, rather than recurring revenue. The Green Party administration’s plan includes allocating £1,038,670 from reserves to initiatives such as the creation of a new town and parish officer, extending contracts for retrofit, climate engagement, energy community officers, and supporting food and environmental schemes.

However, some opposition members expressed concern about this approach. Councillor Nick Evans (Conservative, Tidenham) questioned the characterization of this reserve spending as “prudent.”

“I was confused to see a long list of growth items funded from reserves that typically would appear in the revenue budget,” he said. “Spending large sums from reserves on single-year projects raises questions about financial prudence.”

In response, Cllr Moore defended the council’s strategy, stating that a thorough review of reserves showed excess funds that were no longer necessary to hold. “We believe using these funds now is prudent, enabling the council to achieve its key objectives laid out in the council plan,” he added.

SUBSCRIBE FOR UPDATES


No spam. Unsubscribe any time.