Council tax discount scheme again being developed by the council

Rochdale Borough Council is again planning to introduce a council tax discount scheme for local residents while protecting funding for vital social services.

Under the proposed move, thousands of households in the borough will again be given a two per cent discount on their 2024/25 bills. The discount will mean an average £37 reduction on annual bills.  

To safeguard crucial local services, while reducing the cost to local residents, the council’s proposal will increase bills by the full 4.99 per cent amount permitted by the government but give every household in the borough two per cent back using money from its reserves.

The proposal is being developed ahead of the council’s budget setting meeting, which is being held next month, and is where the final council tax levels will be determined. 

Councillors first introduced the unique scheme in 2023/24, with the two per cent discount costing £2.75 million. The cost of the discount for 2024/25 is estimated to be £2.8 million.

The government has strongly indicated that it will not provide additional money to cover funding gaps, created when councils do not increase council tax by 4.99 per cent.

If the proposals are agreed at the budget setting meeting on 21 February, the discount is planned to be taken off bills before they are issued to households at the beginning of March. That would leave the annual additional charge for Band A homes, which make up 53 per cent of homes in the borough of Rochdale, at 83 pence per week. The discount will not be applied to empty properties.

Councillor Neil Emmott, leader of the council, said: “Our proposal is about protecting frontline services while ensuring residents, who are living through an ongoing cost of living crisis, have a discount on their council tax bills. Last year’s scheme was well received by people across the borough, which is why we have brought forward a similar proposal for this year’s budget.

“I have always said that people want to see the delivery of high quality, value for money services. Our proposals will maintain those vital frontline services, whilst using our reserves to take some of the pressure off our residents.”

The council tax proposals are due to be discussed at the next meeting of the Corporate Overview and Scrutiny Committee, on Wednesday 31 January at Number One Riverside, Rochdale, at 6pm.