Council Tax Hike is Expected in Rochdale For 2026/27
Rochdale, Greater Manchester — Rochdale residents are facing another significant increase in their council tax bills this year, with a proposed hike of 4.99 per cent set to go before councillors later this month.
The increase, which would take effect in April, is part of a wider budget strategy to bring the local authority’s finances back to a balanced position by 2026/27. The budget is due to be formally voted on at Rochdale Town Hall on February 25.
Finance papers reveal that the council is currently over budget by hundreds of thousands of pounds, forcing officials to either find further savings or dip into financial reserves to close the gap. Without the tax increase, the council would struggle to meet its statutory obligations.
Mounting Pressures on Services
The budget deficit is projected to grow significantly, reaching a figure of more than four million pounds by 2028/29. The primary drivers of this financial strain are Adult Services and Children’s Services, which remain significantly over budget.
According to finance bosses, these departments represent the council’s biggest financial burden. The rising costs are attributed to increased demand in care homes and a growing number of children with complex special educational needs and disabilities (SEND).
To mitigate these rising costs, the council has already made savings of just under £1 million on staffing. However, officials clarified that these savings were achieved through natural turnover—by not replacing staff who have left—rather than redundancies. Further cuts have been realised through the ending or renegotiation of business contracts.
Funding Reform and Future Outlook
Local authorities rely on three main revenue streams: council tax, business rates, and government grants. A recent government, "fairer funding review", intended to prioritise deprived areas, initially looked set to negatively impact Rochdale. Early estimates suggested the borough could lose around £10 million in 2026/27.
However, following lobbying efforts by the council and changes to grant allocations announced in November, the outlook has shifted. Rochdale is now expected to see an increase in recurrent funding of more than £12 million in 2026/27, rising to nearly £20 million by 2028/29. The council is also set to receive several million pounds in one-off, "smoothing funding", for the coming financial year.
Despite this positive turn regarding government grants, the council expects that a large proportion of its core spending power over the next three years will still come directly through council tax rises. According to council papers, the tax increases are expected to generate an additional nearly £30 million over the next three-year financial cycle.
What Comes Next
The proposed 4.99 per cent rise is consistent with hikes implemented by the council in recent years to generate extra cash. While the government’s provisional funding settlement is yet to be finalised in the coming weeks—potentially altering the figures—Rochdale’s budget will be voted on at the end of the month.
If approved, the increase will apply to the Rochdale Borough-wide element of the council tax bill from April 1st.
The increase, which would take effect in April, is part of a wider budget strategy to bring the local authority’s finances back to a balanced position by 2026/27. The budget is due to be formally voted on at Rochdale Town Hall on February 25.
Finance papers reveal that the council is currently over budget by hundreds of thousands of pounds, forcing officials to either find further savings or dip into financial reserves to close the gap. Without the tax increase, the council would struggle to meet its statutory obligations.
Mounting Pressures on Services
The budget deficit is projected to grow significantly, reaching a figure of more than four million pounds by 2028/29. The primary drivers of this financial strain are Adult Services and Children’s Services, which remain significantly over budget.
According to finance bosses, these departments represent the council’s biggest financial burden. The rising costs are attributed to increased demand in care homes and a growing number of children with complex special educational needs and disabilities (SEND).
To mitigate these rising costs, the council has already made savings of just under £1 million on staffing. However, officials clarified that these savings were achieved through natural turnover—by not replacing staff who have left—rather than redundancies. Further cuts have been realised through the ending or renegotiation of business contracts.
Funding Reform and Future Outlook
Local authorities rely on three main revenue streams: council tax, business rates, and government grants. A recent government, "fairer funding review", intended to prioritise deprived areas, initially looked set to negatively impact Rochdale. Early estimates suggested the borough could lose around £10 million in 2026/27.
However, following lobbying efforts by the council and changes to grant allocations announced in November, the outlook has shifted. Rochdale is now expected to see an increase in recurrent funding of more than £12 million in 2026/27, rising to nearly £20 million by 2028/29. The council is also set to receive several million pounds in one-off, "smoothing funding", for the coming financial year.
Despite this positive turn regarding government grants, the council expects that a large proportion of its core spending power over the next three years will still come directly through council tax rises. According to council papers, the tax increases are expected to generate an additional nearly £30 million over the next three-year financial cycle.
What Comes Next
The proposed 4.99 per cent rise is consistent with hikes implemented by the council in recent years to generate extra cash. While the government’s provisional funding settlement is yet to be finalised in the coming weeks—potentially altering the figures—Rochdale’s budget will be voted on at the end of the month.
If approved, the increase will apply to the Rochdale Borough-wide element of the council tax bill from April 1st.
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