Following a request submitted in January, Government has now granted permission for a 9.99% increase in council tax in Bradford District for 2025/26.
This will be formally reported to council in March, when the council will meet to decide its budget, including a final decision on setting council tax levels for the coming year.
Government recognises that Bradford Council has been one of the hardest hit by the years of austerity and the least able to recover from this position because of its comparatively very low council tax. This is why we are one of only six councils in the country which are being allowed to increase beyond 4.99%.
The proposed 9.99% increase in council tax would reduce required borrowing costs by about £5.5m a year, avoiding £111 million of borrowing costs for the Bradford council taxpayer over 20 years and helping to protect services.
Bradford’s council tax is:
currently £145 below the national average for metropolitan district councils
the lowest in West Yorkshire
currently ranked 30th lowest out of 36 metropolitan councils nationally
If this increase is approved, Bradford’s council tax would still remain below average compared to the rest of West Yorkshire and to other metropolitan councils nationally.
Through the Exceptional Financial Support (EFS) scheme, the council can apply to borrow the amount it needs each year to bridge the gap between what is spent, and what comes in, until the council’s finances balance. Currently this is planned to take another five years.
Neither the council nor Government takes this decision lightly, and recognise the impact this will have on residents, particularly those in low-income households.
Support is already in place to help residents who struggle financially to pay their council tax through the Council Tax Reduction programme. Should the proposal to increase council tax be approved, further help and support would be made available for residents on low incomes who are experiencing hardship.
Council tax helps fund a wide range of local services which benefit all areas of life. These include safeguarding and caring for older and disabled adults and vulnerable children, supporting schools and families, waste and recycling collections, highways maintenance, street lighting, winter gritting, sports and leisure facilities, libraries and museums, parks and open spaces, environmental health, planning, and support for city and town centre regeneration. Apart from children’s social care, Bradford’s services are delivered at a cost which is at or below the average for similar authorities.
Cllr Susan Hinchcliffe, Leader of Bradford Council, said:
“After 14 years of national funding reductions, which have hit Bradford hardest, the new Government is now taking the necessary steps to fix the foundations and support councils. They have promised more stability through multi-year funding settlements in future years. But 14 years of cuts cannot be turned round overnight.
“This decision to request a one-off increase in council tax beyond the usual 4.99% was not taken lightly. None of us want to see an increase in council tax when other bills are also rising but we have a responsibility to make sure the council’s finances balance. If approved in March, thinking of our least well-off residents, we’d put in place arrangements to further support low-income households.
“We have a clear five-year strategy to address our budget shortfall and achieve financial sustainability. As part of this strategy, we need to find savings or income equivalent to around £40 million next year, and £50 million per year for the following four years.
“We are trying wherever possible to find new ways of working and new funding sources so that we can save money for council taxpayers without cutting vital services. But by increasing council tax now, in many cases by £2 or £3 a week, we can avoid significant borrowing costs of £111 million for Bradford council taxpayers over the next 20 years and protect services in the longer term.”
The council will also allocate £500k p.a. over 2 years to augment welfare and debt advice services, benefit take up activity and signposting to help and support residents experiencing financial hardship.
The biggest proportion of the council’s budget is spent on adult social care and children’s sSocial Care (65%). Only 2% of the council’s budget is spent on Culture and Sport.