To recommend to Council the 2026/27 local Council Tax Reduction (CTR) scheme. 

Councillor Stoddart, cabinet member for finance and corporate services introduced the report. 

The Cabinet received a report proposing that the Council Tax Reduction (CTR) Scheme for 2026/27 be maintained at the current maximum discount level. Members were informed that over 11,000 households in Herefordshire receive CTR, including more than 6,000 working-age claimants. The existing local working-age scheme, approved in February 2025, continues to mirror the nationally set pensioner scheme by offering up to 100% discount unless household income exceeds the threshold.

The administration noted that public consultation undertaken during November–December 2025 showed strong support for maintaining council tax discounts for those most in need. Although no changes are proposed for 2026/27, feedback from the consultation will be used to improve future engagement.

It was highlighted that additional council tax discounts are also available and listed on the council’s website.

Maintaining the maximum CTR discount is expected to help reduce financial pressure on vulnerable residents. The report’s recommendation was endorsed for Cabinet approval.

Comments from cabinet members:

None

Group Leaders were invited to offer their views:

The Green Group outlined their views and noted:

Full support was confirmed for maintaining the scheme, noting it is essential given the maximum council tax increase being proposed and expressing their appreciation that it is being continued.

The Independent for Herefordshire Group outlined their views and noted:

It was noted that the Conservative administration had previously set the maximum Council Tax Reduction discount at 80%, and that the former Independent / Green Alliance administration had increased this to 100%. Appreciation was expressed that the current Cabinet was continuing the full discount. Reference was also made to a previous decision to allocate interest earned on council deposits to support the scheme, and it was queried whether this approach was being applied under the current proposals.

The Liberal Democrat Group outlined their views and noted that:

No comments

In responding to the comments raised, the Cabinet Members noted that:

It was imperative that the council has this option to address hardship and it would be checked when the 100% reduction was introduced. 

The Leader of the Council concluded the discussions. Cllr Stoddart proposed and the Leader of the Council seconded for the decision before them which is that Cabinet:

Recommendations:

That: Cabinet recommends the following to Council

a)    The Council Tax Reduction Scheme for 2026/27, with the same parameters as the existing scheme, be recommended to Council for approval.

The recommendations were unanimously approved.