Claims are being made on both sides about what a new town council would mean. Some are wrong. Some are incomplete. This sets out the position based on published guidance and current facts.
Fact.
A Band D household in Market Harborough will pay £174.13 to Harborough District Council in 2026 to 2027. This is the district element of the council tax bill. It already includes Special Expenses, which fund local services in unparished areas such as grounds maintenance, open spaces and play areas.
Fact.
If a town council is created, it will have the power to set its own precept. This would appear as a new, separate charge on the council tax bill.
Fact.
Many residents already pay more than the headline figure. Those living on managed developments often pay estate or management charges of £220 per year or higher. These charges fund local infrastructure and in some cases, services such as roads, lighting, landscaping, drainage and play areas.
For those households, the cost of local provision is already materially higher than the district council figure alone.
Fact.
The financial context matters.
The council has reduced its tax take by 5 percent this year. This reduces recurring revenue. Inflation continues to increase the cost of delivering the same services. Reserves are finite and typically earmarked. They cannot fund ongoing expenditure without creating a structural deficit. Local government reorganisation is likely, and financial flexibility will reduce during transition.
Fact.
Against that backdrop, a town council introduces a new precept.
Early estimates have suggested a figure in the region of £14 per Band D equivalent. This is indicative only. It does not reflect the full cost of running a council over time, including staffing, administration and service delivery. There is no published, costed model demonstrating that this would be offset by reductions elsewhere.
Fact.
The position on cost is clear.
Residents already fund local services through the district charge. A town council would introduce a second layer of taxation. There is no evidence that this would be cost neutral over time.
Fact.
The position on timing is also clear.
The claim that this is a “now or never” decision is incorrect. Community Governance Reviews can be undertaken at any time under the Local Government and Public Involvement in Health Act 2007. Councils are expected to keep governance arrangements under review. There is no legal barrier to this being considered again in future, including under any new unitary structure.
For residents on managed developments, the issue is direct.
Fact.
You are already funding many local services privately. A town council precept would sit on top of that. There is no statutory mechanism that automatically removes duplication, and no evidence that existing charges would reduce.
In practical terms, you move from one funding layer to two or three:
• district council tax including special expenses
• private management charges
• a potential parish precept
A typical example:
• £174 district element
• £220+ management charge
• plus any new parish precept (£14??)
This already exceeds £394 before any additional charge is applied, or indeed charges for LCC, police and fire services.
Opinion.
This raises a straightforward question of fairness and value.
- What services will a town council provide to your development,
- Which of those are you already paying for?
- Will your management charges reduce?
- If not, why are you paying twice?
- How does this meet the test of effective and convenient local governance?
Conclusion.
You are being asked to approve a new, permanent layer of taxation.
You have not been shown:
- a full cost model
- a long term funding plan
- how duplication will be avoided
You can make this decision later. You cannot easily reverse it once in place.
That is the choice. Whatever you decide please vote on 30th April.
References: for you to do your own research.
• Harborough District Council, Council Tax 2026 to 2027, official billing information
• Department for Communities and Local Government, Guidance on Community Governance Reviews, March 2010
• Ministry of Housing, Communities and Local Government, Community Governance Review Guidance
• Local Government and Public Involvement in Health Act 2007, Part 4
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