Farnham Town Council has agreed to increase its council tax precept for 2026/27, pushing up the Band D charge by almost 10 percent.

The rise will add £8.22 a year to a Band D bill, taking it from £83.45 in 2025/26 to £91.67 — an increase of 9.85 percent.

The decision was taken at a full council meeting on Thursday, January 29, which set the council’s budget at £2,205,030. Of that total, £1.7 million will be raised through council tax.

The increase means residents in a Band D property will pay £91.67 a year, or £1.76 a week, compared with £1.60 a week last year.

The budget includes a target of £501,100 to be raised through sponsorship of major town events, including the Farnham Literary Festival and the Farnham Food Festival.

However, councillors raised concerns about the council’s financial position ahead of local government reorganisation.

Cllr Merryweather said: “This does not feel right.

“We are entering a period where local government reorganisation will put severe pressure on local councils. We are fortunate at the moment that we do not have a cap on how much we can raise council tax, and I am concerned we are raising it by only 10 percent before the real difficulties arrive.”

Cllr John Ward said: “Councillor Merryweather has raised a valid, possible and quite terrifying scenario.

“Our prediction of £500,000 is unduly optimistic. We should take note of the possibility of a future council tax cap and consider raising our precept considerably above its current level.”

Councillors warned that local government reform could bring additional responsibilities without guaranteed funding, leaving the town council financially unprepared. There were also fears that future limits on council tax increases could restrict the council’s flexibility.

Of the total council tax paid by residents, Surrey County Council receives 74 percent, the Police and Crime Commissioner 14 percent, Waverley Borough Council 9 percent, and Farnham Town Council just 3 percent.