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Local News
28 January 2026

Council Tax Hikes Approved In Essex And Cambridgeshire

Local authorities cite rising costs for children’s care and policing as they pass new tax increases, sparking debate over service cuts and future funding gaps.

As the calendar turns to 2026, council tax rises are on the horizon for households in both Essex and Cambridgeshire, with local leaders pointing to mounting pressures on public services—especially care for children and vulnerable adults—as the driving force behind the increases. The proposals, which have sparked debate across the political spectrum, reflect a nationwide challenge: how to fund essential services as costs soar and government support struggles to keep pace.

On January 28, 2026, the Conservative police and crime commissioner for Cambridgeshire and Peterborough, Darryl Preston, put forward a proposal to raise the policing element of the council tax precept by 4.99% for the 2026/27 fiscal year. If approved, this would see the policing precept for Band D properties climb by nearly £15, reaching £314.37 annually. The matter is set to be scrutinized by the police and crime panel at a meeting in Peterborough City Council’s Fletton Quays offices, according to reporting by BBC.

Preston’s proposal comes in the wake of the central government’s provisional funding settlement for policing, announced on December 18, 2025. The settlement estimates Cambridgeshire’s net total policing funding for 2026/27 at £220.6 million—but only if the full £15 precept increase is enacted. The report also highlights a sobering reality: Cambridgeshire Constabulary is currently the fourth lowest funded police force in England, measured by total funding. This context, Preston argues, makes the proposed rise not just reasonable, but necessary to ensure the force can continue to protect the public effectively.

Meanwhile, Essex County Council—also Conservative-run—has approved a 3.95% increase in council tax, set to take effect in April 2026. The move, which will be debated and voted on by all councillors in February, is expected to generate an additional £36 million a year. Council leaders say the increase is all but unavoidable, as the authority faces a sharp 15.5% rise in children’s care costs and a relentless surge in demand for both adult and children’s social care.

Chris Whitbread, the cabinet member for finance and known as the ‘Chancellor of Essex,’ described the budget-setting process as "a challenge," but insisted that the council remains committed to safeguarding vulnerable children. "The budget proposal continues to grow investment into safeguarding vulnerable children," Whitbread told a cabinet meeting, as cited by BBC. He underscored that two-thirds of the council’s entire budget is now devoted to adult and children’s care, with total spending in these areas set to reach £910 million next year—up by £65 million from the previous year.

But the council’s plan to deliver £40 million in savings over the next year by reducing some activities and changing how services are delivered has drawn sharp criticism from opposition parties. Labour councillors have warned that more than £30 million of those savings will come from areas linked to children’s care, a move they say could have unpredictable consequences for families. Ivan Henderson, a Labour councillor, expressed his concern bluntly: "When you see the impact assessment, it says at this stage they don't know what the whole impact of those savings will be. To me, you don't make £30m of savings to children's services when you don't know what the impact will be on the residents of Essex."

Liberal Democrat leader Mike Mackrory echoed these concerns, questioning whether cost-cutting could undermine the quality of care provided to vulnerable children. “Our concern would be: are those children getting the care and support they need from the council?” he asked, highlighting the uncertainty that hovers over the proposed savings.

Council documents reveal that savings in children’s services will include negotiating lower costs with external care providers and increasing the use of foster placements rather than residential care. Specifically, £3.6 million will be saved through "best value procurement and negotiating better prices with external providers of residential placements," and £1.4 million by placing more children in foster care settings. Essex currently supports more than 5,700 children and young people through social care, alongside 16,500 adults—a testament to the scale of the challenge.

Despite the tax increase and planned savings, Essex’s financial outlook remains daunting. The council’s projected budget gap for 2027 has doubled to £110 million and is forecast to rise to £279 million by the end of the decade, largely due to escalating costs in children’s services and growing demand for special educational needs and disabilities (SEND) support. To balance the budget in the short term, the council will dip into its reserves, using £6 million to plug the immediate gap. But as Whitbread acknowledged, "We have always had challenging budget gaps, we've always found savings and we have always delivered." Still, the long-term sustainability of this approach is in question, with senior figures admitting that future years will be increasingly difficult unless new funding solutions are found.

The strain is not unique to Essex. In Cambridgeshire, where the police funding model leaves the force among the lowest resourced in the country, the proposed precept rise is presented as a pragmatic response to financial reality. Preston’s role is to set a precept that enables the Chief Constable to allocate assets and funds appropriately, balancing local needs against the constraints of central government funding. The scrutiny meeting scheduled at Fletton Quays will see the police and crime panel weigh these competing pressures before making a recommendation.

Across both counties, the debate over council tax rises is as much about values as it is about numbers. A recent survey of 1,277 Essex residents found the public almost evenly split: 50% want the council to prioritize services for the majority, rather than focusing solely on those with the greatest need. Yet the reality on the ground is that demand for social care—especially for children and those with complex needs—continues to grow at a rate that outpaces available resources.

Looking ahead, both Essex and Cambridgeshire councils face uncertain futures. The government is expected to announce proposals for the future of SEND funding later this year, a development that could have major implications for local budgets. For now, though, council leaders, opposition councillors, and residents alike are bracing for higher bills and difficult choices as they navigate the complex, often fraught landscape of local government finance in 2026.

As council tax bills arrive in mailboxes this spring, families across Essex and Cambridgeshire will be weighing the cost against the services they rely on—a calculation that, for many, will feel more personal and pressing than ever.