Luton Borough Council will meet in Executive session on 9 February 2026 to consider and recommend the final 2026/27 budget and a proposed council tax increase for residents in Luton, Bedfordshire. The proposals aim to balance the council’s finances while funding essential services, including education and children’s services, social care and other frontline services, for the coming year.
Council leaders are expected to propose a 4.99% increase in council tax — the maximum rise permitted without a local referendum. The council’s published tax policy also confirms that second homes will be charged double their normal council tax from 1 April 2026. If adopted, the changes could see the average Band D household bill exceed £2,400 a year (including police and fire precepts).
The council says it is under sustained pressure from rising social care costs and faces projected borrowing of around £922 million by April 2026, much of which is linked to airport-related investment. London Luton Airport has reported a sharp recovery — media reporting shows pre-tax profits more than doubled in recent accounts and the airport handled around 17.5 million passengers in 2025 — but council leaders say dividend income and airport profits alone will not close the immediate funding shortfall caused by reduced central government support.
The Executive Forward Plan shows final budget details will be discussed at the Executive meeting on 9 February, with a Full Council meeting due later in February to ratify the budget. Council leader Cllr Hazel Simmons MBE has said the administration’s priority is to protect the most vulnerable residents while also managing the town’s finances. If approved by Full Council, the new council tax rates and the second‑homes premium will take effect from 1 April 2026.
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