Council tax to increase by almost five per cent

TAMESIDE residents are set to pay almost five per cent more in council tax to help the local authority cope with ‘huge budget pressures.’

A rise of 4.99 per cent, 2.99 per cent in tax and a two per cent precept for adult social care, is being proposed by the ruling group.

That means for a typical band A property, it will equate to an increase of £54.96 per year, or £1.06 per week.

Those living in Mossley will pay slightly more because of the precept for the Town Council.

Documents for Tameside’s executive cabinet reveal the reasons for the increase, which follows a 2.99 per cent increase last year, one being they are not collecting as big a proportion as previously.

They say the total budget for 2023/24 is £221.397 million, and leaving tax as it is would mean a shortfall of more than £5 million.

Cuts in many services, including things like stopping the provision of green bin caddy liners. Have been earmarked among £10.5 million of savings, with switching of budgets and other measures taking that figure towards £20 million, have been identified.

All non-statutory fees will also go up by 6.6 per cent, meaning it will cost more to do things ranging from lending CDs, talking books and language courses from libraries, as well as printing and photocopying documents.

Fees for hiring football pitches will also rise, with seniors’ costing £585 and juniors’ £338. Increases will also be made on things like market stalls, ice cream pitches, burials and skip permits.

Fees for using council car parks remain unchanged but they are ‘under review.’

Explaining the increase, Tameside Council reports also reveal how increasing demand because of a growing population played its part.

They state: “The council faces huge budget pressures due to demographic changes, increasing demand for services, and rising costs due to both pay and general inflation.

“Whilst the provisional Local Government Finance Settlement offers some welcome increases in funding levels, this does not match inflationary cost pressures, or the increasing level of demand, particularly in Adults and Children’s Social Care Services.

“After taking account of budget reductions, additional funding and income, the remaining budget gap will need to be closed with a 2.99 per cent general increase in Council Tax and two per cent Adult Social Care Precept.

“After taking account of budget pressures, additional income and budget reductions identified for delivery in 2023/24, the total net budget requirement for the Council is £221.397 million.

“Before any increase in council tax levels, the resource available in 2023/24 is £216.155 million, leaving a gap of £5.241 million. This can be closed.

“There remains a significant budget gap in 2024/25 of £13.993 million, which increases to £37.465 million by 2027/28.

“The council continues to face significant cost pressures from demographic growth and increased costs.”

News of the tax increase will not go down well with Tameside residents, especially in the middle of a cost of living crisis.

But the council insists it simply has to happen as it trims its own costs – however while the number of Band D properties has gone up, the rate of collection has gone down.

Reports add: “Balancing the 2023/24 budget has only been possible through the agreement of challenging budget reductions, income generation and demand management.

“Budget reductions to be delivered by management of £10.554 million have been identified for 2023/24. In addition, a number of budgets have been redirected to support cost pressures.

“When these are combined, this results in total expenditure reductions of £15.776 million. An increase in the efficiency factor of £3.814 million, results in total expenditure reductions and efficiencies of £19.590 million.

“Further directorate budget reductions are being sought in relation to the better management of demand or increasing productivity, which will seek to absorb additional or emerging pressures.

“In December 2021, for the 2022/23 financial year, the forecast tax base for Tameside was based on 65,263.9 band D equivalent properties, with an estimated collection rate of 97 per cent.

“The actual tax base in October 2022 was 65,353.4 band D equivalent properties, 90 properties in excess of the forecast.

“For the 2023/24 financial year, the forecast number of properties in Tameside has again increased from 65,263.9 to 65,836.8 band D equivalent properties, based on forecast growth of 483 new band D equivalent properties.

“However, for the 2023/24 tax base, the assumed collection rate is to be reduced by 0.5 per cent to 96.5 per cent reflecting recent trends in council tax collection rates.

“Given the financial challenges facing residents due to current economic conditions, there is a risk that collection of council tax will become more difficult and therefore a reduced collection rate of 96.5 per cent is to be assumed.”

Tameside Council’s executive cabinet will discuss the increase on Wednesday, February 8 and it is expected to go before the full authority on Tuesday, February 28.