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East Riding Budget Agreed as Council Tax Rise Set at 4.99%

East Riding of Yorkshire Council has approved its budget for 2026/27 at the annual Full Council budget setting meeting held on Thursday 5 February.

The budget reflects the permanent reduction in the council’s funding resulting from the Government's Fair Funding Review, alongside increased demand for all council services, particularly in children’s and adults’ social care.

Despite the reduction in government funding, a balanced budget is achieved through a combination of savings, transformation activity, a 4.99% council tax increase, asset sales, and targeted use of reserves to support financial stability while permanent savings are delivered.

The Council Business Plan 2026/27 sets out how the council will achieve the priorities for the East Riding for the coming year and beyond, within the context of the financial challenges. The Plan includes a 10-year vision, highlighting what the authority says are" the many strengths and opportunities, to create and provide a safe and thriving place to live, work and visit".

Councillor Anne Handley, East Riding of Yorkshire Council Leader said:

“Our ambition is to transform the East Riding into a place that is not only beautiful and liveable, but also thriving, sustainable and future ready with the best possible outcomes for residents.

“We are strongly focused on taking action to address the huge financial challenges and ever-rising demand for services that all councils currently face, through a focus on prevention, early intervention and transformation. We are transforming how we work, to operate a learner, smarter council. We will also ensure that the opportunities across the East Riding are seized, providing a platform for inclusive, sustainable growth over the next decade.

“However, with ever-shrinking budgets from government, and the significant impact of the Fair Funding Review, we unfortunately cannot deliver the priorities for residents without increasing council tax.”

From 2026/27, the implementation of the Fair Funding Review means a permanent reduction in the council’s annual funding, with an overall loss of nearly £62m over three years; £9.2m in 2026/27, £20.3m in 2027/28 and £32.2m by 2028/29. In response, East Riding’s budget includes a significant programme of savings and organisational redesign, expected to save £41.8m by 2030.

The 4.99% council tax increase will see those in a Band A property pay an extra £62.25 a year, and those in a Band D property pay an additional £93.37 per year.

2026/27 council tax bands

  •     Band A – £1,309.65
  •     Band B – £1,527.92
  •     Band C – £1,746.20
  •     Band D – £1,964.47
  •     Band E – £2,401.02
  •     Band F – £2,837.57
  •     Band G – £3,274.12
  •     Band H – £3,928.94

You can see the full budget document at https://www.eastriding.gov.uk/council/governance-and-spending/budgets-and-spending/council-budget/

 

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