Last week’s Budget marked a decisive shift in how national government works with local authorities, and Hertsmere Council Leader Cllr Jeremy Newmark welcomed its direction of travel in his Leader’s Update to Full Council.
For councils, this Budget opens the door to the most constructive relationship with central government in more than a decade. The detailed Local Government Settlement and the Fair Funding Review, both expected in mid-December, will build on the foundations set out by the Chancellor. As Cllr Newmark put it, this Budget “sets the tone” for a more stable, long-term approach after years of financial uncertainty.
A New Approach – Cutting the Cost of Politics
The Budget confirmed the government’s intention to modernise local government structures and “cut the cost of politics”, with projected savings of over £250m. Cllr Newmark welcomed the commitment to reform, noting that streamlined structures and clearer accountability can strengthen services and deliver better outcomes.
He also reflected the government’s own emphasis on getting the balance right. Reform should enhance representation, not dilute it. As he told councillors, democracy has value in itself, and the government’s promise of full consultation with the sector is essential to making the reforms work for every community.
This is a government listening to councils and Hertsmere intends to play a full part in shaping what comes next.
A Tourism Levy Fit for Hertfordshire’s New Mayoral Model
With Hertfordshire moving to a mayoral authority, the Chancellor’s introduction of an overnight visitor levy creates a real opportunity to strengthen local services.
Cllr Newmark has long argued for this power, especially given Hertsmere’s rapidly expanding screen sector. The government’s commitment to devolving the levy to mayors is a clear sign of confidence in local leadership and reflects exactly the kind of flexible, localist approach Labour pledged before the election.
But as he set out, the success of the levy will depend on collaboration. Hertsmere’s film and screen economy brings very specific pressures. The government has made clear that local voices will help shape how the levy is used, and Cllr Newmark emphasised that district councils like ours must be central to that conversation – and be empowered to introduce the levy in advance of Mayoral Strategic Authorities being implemented.
“The principle is absolutely right,” he said. “Now we need to ensure the implementation reflects the local realities in places like Hertsmere.”
Fairer Council Tax on High-Value Properties
The Budget announced a new surcharge on homes worth over £2m from 2028. Cllr Newmark welcomed both the fairness of the measure and the government’s guarantee that the revenue will support local services.
This is part of a broader shift towards a tax system where contribution is linked more closely to ability to pay. As Cllr Newmark noted, under the last government a £10m mansion could pay less council tax than a terraced home in some parts of Borehamwood. This Budget puts an end to that imbalance.
Investment in Planning
After fifteen years of underinvestment in planning, the Chancellor’s commitment to funding additional planners is a significant step forward. Hertsmere is experiencing major economic transformation, and planning teams must be equipped to manage growth responsibly. Cllr Newmark welcomed the investment as “long overdue and deeply needed”.
A Budget With Real Benefits for Hertsmere Residents
Cllr Newmark highlighted several key elements of the Budget that will be felt directly in the borough:
• Growth revised up from 1 percent to 1.5 percent
• The fastest wage growth in over a decade
• £150 off average energy bills
• 250 new Neighbourhood Health Centres across England
• Continued reductions in interest rates
• A fairer tax system where unearned income is no longer advantaged over wages
• Reform ensuring high-value property pays its fair share
• Changes to EV tax relief ensuring all road users contribute fairly
• And the removal of the two-child limit — a landmark social reform lifting 450,000 children out of poverty.
“This Budget rejects the failed austerity policies of the past,” Cllr Newmark told Council. “It delivers the highest levels of public investment for forty years and makes the fair, strategic choices our country has needed for a long time.”
Hertsmere Already Seeing the Benefits of National Renewal
The shift in national policy is already aligning with Hertsmere’s ambitions.
The acquisition of the DC01 data centre site in South Mimms by global giant Equinix is a transformative moment that positions Hertsmere at the forefront of the UK’s cloud and AI economy. Cllr Newmark described it as “a gamechanger”, reinforcing the borough’s role as a centre of high-tech growth.
Alongside Cllr Parveen Rani, he represented Hertsmere at the UK Screen Investment Summit, where the borough’s film and television cluster attracted strong interest from ministers and private investors. With the Sky Studios expansion, the BBC Fairbanks development and the revitalisation of Elstree Film Studios through the MBS partnership, Hertsmere is increasingly seen as a national leader in creative and digital industries.
A Partnership for Prosperity
The message from Hertsmere Labour is clear. This Budget marks the start of a new era of partnership between central and local government, built on fairness, stability and shared ambition. The coming Local Government Settlement will continue that journey.
For Hertsmere, the opportunity is substantial and our council is ready to take it.
As Cllr Newmark concluded, “This is the path to growth, security and prosperity. And Hertsmere is already showing what Labour in power can achieve.”