Council tax in Rochdale is expected to rise by 4.99% in April, as the local authority moves to secure a balanced budget for the financial year 2026/27. The proposal will be brought to vote at Rochdale Town Hall on 25 February, during the council’s annual budget meeting.
The rise, in line with similar increases seen in recent years, comes as the council faces a growing strain on core services. While no service cuts are planned, pressures from adult social care and special educational needs continue to drive significant spending.
Budget Increase Driven by Adult and Children’s Services
The proposed 4.99% rise is part of an ongoing strategy to offset a widening financial gap in service delivery. According to council finance papers, Rochdale Council is currently over budget by £656,000. While savings of just under £1 million have been achieved, mainly by not replacing departing staff and by renegotiating or ending contracts, certain departments remain under sustained pressure.
Adult services and children’s services have been cited as the largest contributors to this financial burden. According to the council, the rising demand for care homes and a growing number of children with complex special educational needs and disabilities (SEND) are pushing these budgets well beyond original forecasts.
The budget deficit is projected to increase further over time, with current figures indicating a shortfall of £4.423 million by 2028/29. Nevertheless, the council has confirmed that it does not expect to introduce cuts to public services this year.
New Government Grants Expected to Relieve Pressure
Local authorities such as Rochdale rely heavily on council tax, business rates, and government grants to fund their operations. A recent change in national funding policy is expected to alter the financial landscape for the council significantly over the coming years.
According to information presented in the council’s recent budget documents, Rochdale had initially anticipated a funding reduction of £10 million under the government’s fairer funding review, which was designed to reallocate resources across the country. However, following lobbying efforts and a revision of grant allocations announced in November, funding for Rochdale is now expected to increase by £12.3 million in 2026/27. This recurrent boost is forecasted to grow to £19.7 million by 2028/29.
In addition to this, the council is also set to receive a one-off “smoothing” payment of £6.5 million in 2026/27, providing some temporary relief during the transitional funding period. According to council papers, council tax increases are projected to generate an additional £27.8 million for the authority over the next three years, reinforcing the importance of annual tax hikes in maintaining local services.
The final details of the funding will depend on the government’s provisional settlement, which is expected to be announced in the coming weeks. Until then, the 4.99% tax rise remains a key measure to ensure financial stability while keeping essential services running.
