Norfolk County Council could raise tax precept by 5% to combat ‘significant financial pressures’

County Hall could raise its council tax by 5% as it battles to navigate “significant financial pressures”.

Norfolk County Council will have budget gap of £41.6million in 2026/27 - rising to £171.4million over the next four years. According to a new report, this has been driven by rising demand and inflation.

To address the financial gap, the council has developed proposals to save £35.7million - with major savings expected through investment in key demand-led services such as adult social care and home-to-school transport.

The authority’s current planning assumes a 2.99% council tax increase, including a 1% adult social care precept.

However, the Government has set a referendum threshold of 5%, including a 2% adult social care precept - and the Government’s funding model assumes councils will apply the full 5% increase. The council is therefore to consult on a range of options.

Cllr Andrew Jamieson, deputy leader and cabinet member for finance at the council, said: “We are operating in a climate of continued uncertainty.

“Inflation, demographic pressures, and a lack of clarity around future funding settlements mean we must make difficult decisions to ensure we can continue to deliver vital services.”

Council tax remains a “critical lever in balancing the budget”, according to the authority.

Councillor Jamieson added: “We want to minimise the burden on Norfolk taxpayers and that means keeping rates as low as practically possible.

“However, council tax represents an increasingly large percentage of the funds that Government say are available to Local Authorities - rising to 56%.

“The Government have consistently indicated that they expect councils set council tax to the maximum allowed.

“Therefore, the financial settlement we receive from government in December will ultimately dictate where we can set council tax in Norfolk.”

The council is focusing its efforts on “transforming high-demand services to improve outcomes and efficiency”.

In adult social care, savings proposals include expanding community-based support, integrating care models, and reforming commissioning to reduce reliance on formal care services and improve wellbeing.

These changes would supposedly support people to live independently for longer and reduce pressure on more costly services.

In children’s services, plans target “smarter approaches” to home-to-school transport - including increased use of travel training, reviewing high-cost contracts, and supporting independent travel where appropriate.

Other initiatives include reducing reliance on residential placements and helping families stay together through targeted support.

Cllr Jamieson said: “We are prioritising person-centred approaches in adult social care and smarter solutions in school transport.

“These proposals aim to protect services for vulnerable residents while ensuring value for money. These proposals are not just about cost-cutting - we are investing in how the council delivers local services.”

Over the coming months, the council’s budget will be subject to public consultation and scrutiny by the authority’s select committees.

Key national announcements - including the autumn budget on November 26 and the local government finance settlement in December - are expected to influence the final proposals.

The council’s cabinet will review updated proposals on January 26, with full council making final decisions - including on council tax - on February 17.

The cabinet will consider the finance reports when it meets at 10am next Monday (October 13).