Photo by Sarah Agnew on Unsplash
Council tax bills for households in Exeter are set to rise again in the coming financial year, with local authorities confirming a near-five per cent increase as part of the latest budget plans for 2026/27.
For an average Band D property in Devon, the Devon County Council portion of the bill will rise to £1,891.17, up from £1,801.26 in 2025/26, representing a 4.99 per cent increase or £89.91, according to figures published by Devon County Council.
However, the total amount residents pay in Exeter is made up of several different charges.
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Council tax is collected by Exeter City Council but is shared between multiple public authorities, including Devon County Council, the Devon and Cornwall Police and Crime Commissioner, and the Devon and Somerset Fire and Rescue Authority, alongside smaller contributions to town or parish councils where applicable.
Around 72 per cent of the overall council tax bill goes to Devon County Council, which is responsible for the largest and most costly services across the county.
The authority says the revenue raised helps fund services for more than 842,000 residents across Devon, including education, highways maintenance, social care, youth services, libraries and waste disposal facilities.
District councils such as Exeter City Council use their share to pay for services such as refuse collection, recycling, housing support, planning, street cleaning and leisure facilities.
A large proportion of the county council’s funding is directed towards social care.
For the 2026/27 financial year, the council plans to spend £395.9 million on integrated adult social care, reflecting rising demand and pressures from the National Living Wage.
Meanwhile, £268 million is allocated to children and young people’s services, the largest area of growth in the budget due to increasing placement costs, workforce pressures and reforms to early help support.
Other spending areas include:
Overall, Devon County Council expects to spend £2.104 billion on services in 2026/27, compared with £1.987 billion the previous year.
Of that total, around £1.494 billion will come from government grants, business rates and other income, leaving a Council Tax requirement of £610.26 million.
Council leaders say the increase reflects the financial pressures facing local authorities nationwide. The 2026/27 settlement is the first multi-year local government funding settlement in more than a decade, following reforms to funding formulas and a reset of business rates announced by the government.
Despite this, council leaders say the increase in core government funding remains limited.
Devon’s core spending power is expected to rise from £867.8 million in 2025/26 to £910.5 million in 2026/27, a 4.9 per cent increase - but officials say that figure assumes the full 4.99 per cent Council Tax rise and a 100 per cent collection rate.
Finance leaders at Devon County Council have argued that Council Tax alone cannot sustainably fund the scale of services councils now provide, particularly in social care and children’s services, where demand has continued to rise sharply.
Alongside the core spending commitments, the budget includes additional targeted investments, such as:
- £600,000 to improve SEND services
- £300,000 to support foster care
- £106,000 to strengthen domestic abuse provision
- £600,000 allocated to local community projects through councillors.
Infrastructure spending has also been boosted, with an additional £4 million for highways maintenance and £15 million for road improvements on top of a wider £86 million highways programme.
Libraries, for example, are expected to continue operating, but the council has warned the current funding model is not sustainable, setting aside a £1 million reserve to support libraries and community hubs while future solutions are explored.
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