Council tax set to rise by 5% despite 'savings'

Telford and Wrekin Council is considering making cuts of £20 million next year, even if it raises council tax by the maximum amount.

The authority wants to increase council tax by five per cent, but budget papers show that the extra amount this could bring in would be dwarfed by the costs of social care.

Finance officers are projecting that the council will set a revenue budget of £233.453 million in 2026-27, nearly 40 per cent more than this year.

Council tax could bring in more than £104 million, but this would leave a gap of more than £20 million, which the council would have to make from additional savings, on top of nearly £2 million in cuts previously been included in budget assessments.

The report puts forward new proposals that will deliver ongoing savings – including from additional income – of £19.1 million, commencing 2026/27.

In a meeting on Tuesday, officials are set to tell the cabinet that funding generated from the proposed rise would be invested in social care provision.

The meeting will be asked to trigger a consultation with town and parish councils, voluntary organisations, and the public, and a consultation for the budget would take place from 7 January to 3 February.

There would then be another cabinet meeting on 12 February, before the budget is set by full council on 26 February.

The council tax increases will mean anyone in a Band B property, which reflects the majority of bandings across the area, would pay an extra £1.20 per week.

"It is likely that the council will still have the lowest council tax in the Midlands for the services that it provides," officials said.

The authority is also set to see more funding coming from central government, but final figures are yet to be determined, and the report makes it clear the numbers will change.

"The council tax increase will raise £4.7m towards the £15.8m additional investment that is required into our adult social care services next year with the additional investment required being funded through further budget savings," it said.

The council is also projecting that spending on children's safeguarding will have to increase and officers said further investments in other priorities would require the authority to identify more budget savings.

The report does not specify where cuts could be made.

This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.

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