Hereford households will see a £2.19 rise in the local part of their council tax from April, following a narrow vote by the city council.

This will put the amount that the city takes from a band D household’s council tax bill up to £56.86 – a rise of 4 per cent.

The city council had agreed the rise in principle as part of its three-year budget plan, but an amendment from Coun Jim Kenyon at a committee meeting on January 11 proposed freezing the rate instead.

In Coun Kenyon’s absence at full council, this was proposed by Coun Williams and seconded by Coun Kevin Tillett. Coun Williams said the freeze “would show were are listening to people and responding”.

Coun Tillett said: “We held it level last year and now we have the chance to do the same. There is a cost of living crisis which affects us all. There is little we can do about domestic bills but we can do this small thing. Our reserves are well over £1 million.”

But town clerk Steve Kerry said the rise was necessary to secure the city’s bid for £1.7 million from the government’s Stronger Towns Fund (STF) to pay for free electric buses for the city.

The funding would be in jeopardy if the council is unable to demonstrate it can fund the buses’ upkeep, he said. “An important part of the business case is that it’s sustainable.”

Meanwhile, it’s “not impossible” that the Government might scale back its overall STF funding. “When the government is under pressure, it cuts local funding first,” Mr Kerry said.

“The £22 million that Hereford is expecting might not be delivered in full. If we lose the bus project, we will have lost the £1.7 million capital grant for the sake of this small rise.”

Mr Kerry added: “In my 12 years, I have never heard anyone object to our part of the council tax, which is only about 35 per cent of what the market towns charge.”

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Coun Jeremy Milln said it was “barely the price of a cup of coffee”, while Coun Diana Toynbee said residents “want us to be bold and ambitious”.

Mayor of Hereford Paul Stevens said he had “helped bring a more business-like way of working” at the council and having three-year budget plans was part of that. He was “astounded” that this was now being called into question.

He added: “I have had some difficult conversations with Coun Kenyon that I haven’t had with any other councillor.”

With the vote balanced at eight for the amendment to freeze and eight against, Coun Stevens used his casting vote to reject it. The budget, including the rise, then passed by eight votes to seven with one abstention.

The city's precept (charge) is just one component of the overall council tax, which is due to be finalised by Herefordshire Council in early March.

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