Council tax in Oldham may rise again this year to bridge funding gaps in the budget brought on by the pandemic and cost-of-living crisis.
Oldham Council said it is preparing the budget for the coming financial yet but warned "tough decisions" will need to be made to fill a "huge budget gap".
While it said it hopes to focus on building a better borough and protecting the services residents rely on, more than a decade of Government funding cuts has taken its toll.
Meanwhile, the council said demand for its services has increased, primarily in adult and children's social care due to Covid and the rising cost of living.
In order to balance the books, cuts will need to be made totalling £29.3 million and a further £13.5 million will follow in 2024/25.
The figures are lower than what the council initially estimated due to receiving around £7 million more in government funds last year, amounting to a three per cent rise.
However, even with the boost, the three per cent still falls below inflation and years of austerity measures have resulted in the council's budget being slashed by £204 million.
The struggling budget has meant several services have been cut back or lost entirely.
As a result, Oldham Council said it is proposing a council tax increase of 3.99 per cent - marginally below the five per cent proposed by the Government - which means the average Oldham household will pay around 92p extra per week.
The proposed rise does not include the council tax precepts set by Greater Manchester Mayor, Andy Burnham, which is yet to be decided.
Councillor Amanda Chadderton, leader of Oldham Council, said: “The cost of living crisis is affecting many Oldhamers so raising Council Tax is not a decision we took lightly.
"Unfortunately, this rise is essential to bridge the budget gap."
The councillor said local authorities across the country are "all in the same boat" but admitted it will come as "little comfort" to Oldhamers who are struggling.
She continued: “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.
"I’m absolutely committed to investing in the things that are the most important to us all, to build a better Oldham."
Cllr Chadderton said £15 million will go towards improving children's social care, tackling the cost-of-living crisis and delivering developments that will boost the local economy, create jobs and support businesses.
The annual budget does have some good news for the lowest-paid in Oldham as the Real Living Wage will rise from £9.90 to £10.90.
Councillors will also be considering proposals this February to cease charges for pest controls and cut back on events such as the annual dinner for the new Mayor in further ways to claw back funds.
The council is also seeking the views of residents in a public consultation which will run until Friday, February 10 here: https://www.oldham.gov.uk/budget23-25
Councillors make a final decision on the budget plans at its full council meeting on March 1.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel