Trafford Council's financial settlement revealed

Finance chiefs in Trafford were forced to ask for extra support after the government’s recent Fair Funding Review left the borough with a budget deficit of £24m.

It means the Council will not be going bankrupt and will be able to support increased need for its services among some of the most vulnerable people in the borough.

It follows a sustained lobbying campaign by the council with the objective of developing a sustainable funding strategy for the Council.

The Council has been given approval to increase council tax by up to 7.49% in 2026/27. This represents an extra 2.5% in flexibility and is in recognition of the low council tax level the Council has. Should this be agreed at Budget Executive and Council on 5 March it will mean the Council still has the second lowest council tax in Greater Manchester and still about 10% lower than the average of other metropolitan districts. The additional 2.5% increase will cost residents an extra 83p a week on the average band D property.

Last month Trafford Council confirmed it had applied for Exceptional Financial Support (EFS) for the second time to provide time to put it on a more sustainable financial footing. The council tax increase is part of this application.

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."