Council tax to rise 4.99pc

Oldham town hall bosses have confirmed a council tax rise of just under five per cent, despite a ‘change of direction’ for the local authority’s financial outlook.

The tax will rise from April 2026 by the maximum 4.99pc permitted without a local referendum, with 2pc earmarked for adult social care. The price hike will see those living in Band A properties charged close to £1,717 – an increase of around £82; £2003 a year for Band B (£95 increase); and £2289 for Band C (£109 increase).

Those in Saddleworth and Shaw & Crompton will be charged a slightly higher rate including their parish council taxes.

The increase comes as the local authority reports a slight improvement in their financial position. This is because of an extra £28m from the government’s three-year Recovery Grant, and a new boost from the Fair Funding Review – a change to how money is allocated to councils across the country.

But the borough is still facing a predicted overspend of £15m for the 2025/26 budget, and will have to plug a £20m budget hole for the 2026/27 budget due to projected spending pressures in children’s care, adult social care and temporary accommodation.

Finance boss coun Abdul Jabbar said: “For a long time, council funding has been unfair. Areas with lower levels of need were able to keep council tax low while still receiving high levels of funding, while places like Oldham were left having to raise council tax just to protect essential services.

“The government has now been clear that this approach is changing. Councils are expected to raise income to help fund services, and those that choose not to do so will see the long-term impact through reduced funding and a diminished ability to support their communities.

“At the same time, the government recognises that not all areas face the same pressures. That’s why councils like Oldham, with higher levels of need, are now receiving additional funding alongside council tax.

“This creates a fairer system, one where everyone plays their part in funding local services, but where responsible places like Oldham are no longer left standing alone or penalised for meeting the needs of our communities.”

Along with raising revenue through council tax, the town hall intends to balance the books using grant funding that was previously ring fenced for specific purposes, and an average 10pc increase to council services like parking charges and marriage certificates.

There will also be £8.1m worth of cuts to services, including by bringing bulky waste disposal in-house, charging those in temporary accommodation a ‘fair share’ contribution, and closing the Chadderton Park Day Service.