Trafford Council is one of Seven councils facing financial challenges that have today been granted limited additional flexibility in setting council tax rates
Trafford has been allowed an additional two and a half per cent flexibility over the 4.99 per cent limit
It is the second year in a row that the rise in Trafford has been above that of the typical referendum limit
A report submitted to the Council’s Executive last month set out how finance officers identified ways to reduce an initial three-year budget gap of £50m down to just £10m.
However, the Government’s recent Fair Funding Review of local council finances means the funding gap will now increase by £24m.
The report proposed a formal application to the government for what is known as Exceptional Financial Support (EFS) of around £20.6m in order to achieve a balanced budget. This a loan repayable to the government over 20 years.
Council Leader Tom Ross said:
“This has been a really tough request for us to make but this increase is needed as it allows us to support increased spending where it is desperately needed – on vulnerable adults, children and homelessness.
“I know any council tax increases will be difficult for some people to manage and many of our residents will be seeing rising costs in other aspects of their lives so we want to do everything we can to support those who may be facing financial hardship.
“If the increase is agreed, we will look to support our residents, who are on low incomes, where we can through our council tax support scheme, local welfare assist scheme and by using the new Crisis and Resilience fund as effectively as we can.”
Cllr Ross added:
“The fact that we are applying for EFS twice in two years is a difficult position for Trafford to be in, particularly given the fact we are recognised for our sound financial management, but we are not alone with other local authorities also reapplying.
“It does mean that our efforts to increase revenue, save money and work towards financial sustainability are more important than ever and we are doing all we can to reduce our budget deficit.
“Our budget package will continue to address our corporate priorities, with more money spent on making sure our children and young people receive the best start, that everyone can enjoy healthy and independent lives, and that our economy thrives for all our residents and businesses.”
