Bradford Council has been given permission to raise Council Tax by 9.99 percent this coming year.
While any increase is unwelcome, the Council’s attempt to add an extra 4.99 percent was blocked, sparing residents from an even higher rise.
Last month, Bradford Council wrote to Government to ask permission to raise Council Tax above the maximum 4.99 per cent rise.
The authority requested permission to raise Council Tax by as much as 14.99 per cent.
The cash-strapped authority was recently granted “exceptional financial support” to help balance its finances.
This would allow the Council to borrow huge amounts of money, as well as use income from the sale of assets to fund Council services.
But the borrowing will lead to interest payments. Bradford Council argued that increased Council Tax income would mean it had to borrow less – thus reducing the interest costs in future years.
But the Government has today decided not to allow the nearly 15 per cent rise – although the 9.99 per cent increase is still likely to prove unpopular.
The Government today announced that six Councils including Bradford will be allowed to raise their Council tax by above 4.99 per cent.
The extra five per cent rise granted to Bradford is the highest of the six Councils.
The Government announcement said: “Having carefully considered requests from councils, the government has agreed small increases for six councils.
“For the 2025 to 2026 Settlement, bespoke additional council tax referendum principles will apply for Windsor and Maidenhead Borough Council (+4%), Birmingham City Council (+2.5%), Bradford Council (+5%), Newham Council (+4%), Somerset Council (+2.5%) and Trafford Council (+2.5%).
A statement from Bradford Council said: “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 per cent.
“The proposed 9.99 per cent 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.
“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.”
Bradford Council Leader Susan Hinchcliffe 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.”
A Council spokesperson added: “The biggest proportion of the council’s budget is spent on adult social care and children’s Social Care (65 per cent). Only two per cent of the Council’s budget is spent on Culture and Sport.”
