Council tax proposed to rise by 3.99pc in Oldham as £30m cuts made

Proposals to increase council tax by 3.99pc from April amid nearly £30m  of cuts have been unveiled by Oldham chiefs.

Council bosses say they have a ‘huge’ budget gap to fill this year amid rising demand for key services, including adults and children’s social care.

However, leaders have chosen not to increase the local tax by the maximum possible of five per cent allowed by the government.

The 3.99 pc rise will see ‘average’ households pay around 92p more a week, before Mayoral and police precepts are added on top.

To balance the books in the coming financial year the authority is planning to make cuts totalling £29.3m, with a further £13.5m to follow in 2024/25.

The details of the areas to be cut are yet to be published, but will be considered by the cabinet when it discusses the full budget papers next month.

A final decision on any council tax rise and cuts would be taken by full council on March 1.

Oldham council says the savings were less than anticipated with it receiving around £7m more in government funding than the previous year, approximately a three per cent rise.

But chiefs said that was ‘far below inflation’ and came after years of austerity which had slashed the council’s budget by a huge £204m since 2010.

Council leader Amanda Chadderton said they did not take the decision to raise council tax ‘lightly’ amid the cost of living crisis affecting residents.

“Unfortunately, this rise is essential to bridge the budget gap,” she added.

“Councils across the country are all in the same boat, with many putting up their council tax bills by the full amount expected by government.

"This will come as little comfort but we didn’t want to do that because we know many of you are struggling.

“The extra money raised will be used to support those who are struggling and to boost social care.

"Increased support for social care will also help relieve pressure on the NHS.

“Despite all these cuts and lack of funding we still need to protect and carry on delivering vital services we know you all rely on.

"And at the same time I’m absolutely committed to investing in the things that are the most important to us all, to build a better Oldham.

“This means putting a huge £15m into improving children’s social care; tackling the cost of living crisis head-on with one of the country’s biggest support packages for those who need our help; and delivering developments that will boost the local economy, create jobs and support businesses.”

A consultation asking residents for their views is running until February 10.

People can take part at: www.oldham.gov.uk/budget23-25

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