Residents to see 2.99% increase on their council tax in Rochdale

Rochdale council has passed its annual budget unopposed for the first time in nearly 50 years – including plans for a 2% council tax rebate to all households.

Labour’s proposals were unanimously approved by members, with none of the three opposition parties tabling an alternative budget or amendments.

The financial plan for the next 12 months will see council tax bills rise by 4.99% before the rebate – including 2% ring fenced for adult social care – rising to a total increase of 5.15% with Andy Burham’s mayoral precepts.
 

Read more: Council tax increases for policing and firePublished: 16 February 2023

It means the average ‘Band D’ household’s bill will rise by around £9 more per month from April.

However, to cushion the blow somewhat, every home will automatically receive a 2% rebate regardless of which council tax band it is in. This will be funded by reserves. The rebate will be deducted from residents' first council tax payment of the year.

 

 

An extra £500k has also been put aside for targeted support to help the poorest households in the borough ‘weather the storm of the cost of living crisis’.

Council leader Neil Emmott hailed the ‘good, fair and robust’ budget, saying it would result in Rochdale residents having the lowest council tax rise in Greater Manchester and one of the lowest in the North West.

In a slightly bizarre move, he also brandished his 25 yard swimming certificate from 1974 – one of the last issued by the Lancashire Education Committee before services were transferred to the newly formed Rochdale council.

“I’m not asking for a new certificate this evening,” said Councillor Emmott, now aged 60. “But I am the first leader of this council in 49 years of its existence who has been able to come to our budget setting meeting without having to face an alternative budget from the opposition, or indeed any opposition amendments to my budget. Forty-nine years, Mr Mayor.”
 

Council Tax breakdown

Council tax is made up of four elements. The majority is made up of the general element, set by the local authority. The remaining elements are the ring-fenced adult social care element, which is also set by the local authority, the policing precept and the mayoral general precept. The latter two are both set by the Greater Manchester Combined Authority.

The mayoral general precept partly funds the fire service and other Greater Manchester-level purposes like rough sleeping support and free bus passes for young people, whilst the policing precept is the amount you contribute to local policing.

The leader said the unprecedented political harmony was because the budget was sound and robust, helped residents with a council tax discount and maintained frontline services.

He explained bosses had opted for a rebate scheme – rather than a smaller rise – as failing to implement the maximum increase could mean getting less money from the government in future.

“They will say ‘well, look, you only increased council tax by 2.99% for 2023-24, so you don’t need as much money from government to run your services next year and the year after and the year after that’,” he said.

 

 

Councillor Emmott also hailed the ‘bipartisan approach’ to finding £737k savings between Labour and the Conservatives and the ‘prudent’ management of finances which had allowed discount to be given.

Councillor John Taylor, leader of the Conservative group, said the borough was living through the worst cost of living crisis many had known, due to the fallout from the pandemic and the Ukraine war.

“That unique set of circumstances have conspired to make life very difficult for all our residents and now is the time for a collective and helpful response from this council,” he said.

“Now is the time for us to limit the impact of those challenges. It is not the time to argue about minor details, it means we have chosen not to do so – the bigger picture is far more important.”

Councillor Taylor said the Conservatives backed the budget, saying it was ‘sensible’ and the rebate was ‘in essence’ the same across-the-board rebate his party proposed last year, when Labour adopted a more targeted approach.

 

 

The budget also includes an additional £10,000 for each of the borough’s 20 wards. This could be spent on projects ranging from a new dropped kerb or grit bin, or support for a community group.

Councillors also voted through a 4% increase in the fees the authority charges for some services. However, there are a few exemptions to the rule – including taxi licences, car parking and wheelie bins.

And registrars fees will only rise by 2% ‘in order to remain competitive with ceremony fees in neighbouring districts, and to support local businesses’.

But some will go up by more than the standard 4% – including pre-planning application advice (5%) and building regulation decision notice enquiries (14.6%). Pest control fees have also been ‘completely overhauled’.

Rochdale council met at Number One Riverside on Wednesday night (22 February).

Nick Statham, Local Democracy Reporting Service