A 4.99 per cent council tax rise for Rochdale is set to be brought in, but the local authority will be using reserves to give a discount to all residents.
The latest meeting of town hall bosses confirmed the plans to raise tax by the maximum threshold.
Most local authorities have consistently hiked the tax by 4.99pc in recent years to rake in extra cash. Rochdale council is planning to provide a two pc discount on this increase from their own coffers – an estimated average reduction of £41 on residents’ annual bills over the next 12 months.
Rochdale council’s cabinet was told how tax has to be increased every year in order to set a balanced budget and get the full allocation of government grants for the next financial year.
Council leader Neil Emmott told the cabinet on February 10: “Once again we are able to give a TWO pc discount to every household in the borough. This means, in real terms, our tax increase this year is 2.99 pc.
“If we don’t put up council tax by what is expected it affects our government funding for next year. Because we have been a financially competent council over the last few years, we are able to build up reserves so we can give that discount to every household in the borough.
“We have still been able to keep our core services for the community. We have not cut back on those services that our residents expect to see from their council tax.”
The largest chunk of Rochdale council’s overall £355.6m budget is taken up by adult and children’s services. The two sectors have respective budgets of £106.4m for adults and £97.3m for childrens.
Adult services and children’s services are significantly over budget and seen as the biggest financial burden for the council. This is due to increased costs associated with the rising demand in care homes and the increasing number of children with complex special educational needs and disabilities (SEND) needs.
This excess financial burden of adults and children’s services was aided by a government recovery grant of £4.4m this year, which will rise to £7.94m by 2028/29. Finance boss Sam Smith told the cabinet this boost of more than £400m for lcoal authorities nationally came following consultation between councils and the government.
Finance bosses have also found savings, meaning they can put cash back into their finite reserves, which has been depleted in recent years. General reserves have increased from £17m to £20m in 2026/27, the meeting in Number One Riverside, council HQ, was told.
The 4.99 pc tax rise will be put before the annual budget council meeting on Wednesday, February 25 where councillors will officially vote on the matter. If approved, the increase will take effect for residents in spring.
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