Lancashire County Council has proposed a 3.8% increase in its share of council tax for the 2026/27 financial year — the lowest rise in Lancashire in 12 years. The draft budget was published on 14 January 2026 and says the increase aims to keep household bills as low as possible while funding essential services such as road repairs and adult social care.
This is the first full budget from the Reform UK administration since it took control of Lancashire County Council in May 2025. Council leaders say they reduced a projected £28 million overspend through efficiencies and management changes, a move they say helped limit the size of the rise.
The 3.8% increase is composed of a 1.8% general levy and a 2.0% Adult Social Care precept. If Full Council approves the draft budget at its February 2026 meeting, the new rates would take effect from 1 April 2026, the start of the new financial year.
The council’s draft budget allocates £55 million toward a stepped-up highways and environmental programme — covering pothole repairs, flood prevention work and local environmental improvements. Opposition figures, including Azhar Ali (leader of the Progressive Lancashire group), told the BBC the rise breaks pre-election pledges to freeze or reduce council tax.
The 3.8% rise is below the 4.99% maximum the government permits without a referendum. Cabinet members have said the lower-than-maximum increase demonstrates they are listening to residents under pressure from rising living costs; opposition councillors disagree and have criticized the decision.
