Council tax set to rise by 4.99% in Tameside

Residents in Tameside can expect to be paying 4.99 per cent more in council tax soon.

Council bosses have approved the latest budget plan for 2026/27 – which is set to be formally approved at the full council meeting next month.

No council services will be cut as a result of this move from the local authority, the meeting of Tameside council’s cabinet was told. According to budget papers, savings of £8.973m are still needed to set a balanced budget for next year, with improved efficiency and lower department costs being found by finance bosses.

This comes despite core spending power (CSP) for the council increasing by seven per cent – due to additional government funding. In cash terms this means an extra £20.5m for Tameside council, the meeting in Ashton’s Tameside One building on February 18 was told.

Some £7.9m of the £20.5m will come from the council tax increase, meaning it is only a boost of £12.9m in government grants. If councils don’t raise tax by the maximum amount, they face reduced government funding the following year, the cabinet were told. 

Finance boss Coun High Roderick said: “We are ensuring that we are protecting frontline services in this budget. There will be no cuts to frontline services. 

“Crucially we will be putting £4.5m into our reserves to increase our financial resilience. This budget protects children in our care and vulnerable adults that need us.  This is built to build us for the future.”

Coun Roderick added: “We wouldn’t put council tax up if we didn’t have to. The ask for residents is that if you are struggling to pay your bills, please let us know because we will help.”

Setting a balanced budget is a legal requirement for all councils. If they can’t do this they would have to issue a section 114 notice – effectively declaring bankruptcy.

If the savings goals of £8.973m aren’t met next year, like they haven’t been so far this year, cash will need to be taken from the council’s finite reserves. It is estimated that £6m from the local authority’s reserves will be needed to prop up council finances at the end of this financial year due to budget challenges.

It is for reasons like this Tameside council is budgeting to put £4.5m back into reserves next year, to safeguard their coffers for more difficult times in the future.