Trafford Council has asked the government for support to help address a £12m shortfall in its 2025/26 budget.
The council says that desoite finding savings of over £300m in recent years, rising demand for vital services means they are facing some tough decisions in the year ahead
Trafford has been given permission by the Government to increase Council Tax by 2.5% above the referendum level, which will result in a 7.49% increase in 2025/26
They have also applied for a capitalisation loan facility and the Council expects to hear the outcome of the application over the coming weeks.
The Leader of Trafford Council, Councillor Tom Ross said:
“We have been facing significant ongoing financial challenges for several years. Historic funding deficits and increasing cost pressures and a rising need for services especially among children’s and adult social care, compounded by the many years of council tax freezes, mean it is becoming harder to deliver what our residents and businesses need while balancing our books.
“We are not alone in this, as a similar story is being repeated in other local authorities across the country.
“We have managed our finances well in recent years despite having a structural budget deficit. Since 2010 we have addressed budget gaps of over £300m. This year we must set one of our toughest ever budgets, with some difficult considerations and decisions to make.
“A recent independent review carried out by a team of financial experts found we have robust financial arrangements in place but that we have historic funding challenges that we must take decisive action to address.
“This forthcoming financial year has been even tougher for us. It is against this background that we have taken the considered and responsible decision to ask the government for some financial help, known as Exceptional Financial Support (EFS) which will allow us to set a balanced budget.
“We understand the financial pressures that many of our residents are facing and we have not made the decision to seek to increase council tax lightly. However, we have no option if we are to get the council on a firmer financial footing, ensure we have a plan to rebuild our finances and to address the structural financial deficit.
“We very much welcome this support and we are grateful to government ministers for their prompt response to our request for help.
“We are not complacent and will continue to shape a robust and sustainable financial plan for the Council to ensure that we address the deficit in our budget, tackle the need for change across local authority funding mechanisms, manage increasing demand for services and also address the many years of council tax freezes to continue to deliver services for everyone in our borough.
