Rochdale Borough Council has unveiled a fresh proposal to reintroduce a council tax discount scheme for local residents, aiming to provide financial relief while simultaneously safeguarding essential social services. The innovative plan, set for discussion at an upcoming budget meeting, seeks to balance fiscal responsibility with direct support for the community.
Details of the Proposed Discount Scheme
Under the proposed initiative, thousands of households across the borough will benefit from a two per cent reduction on their council tax bills for the 2026/27 financial year. This discount scheme, which mirrors successful implementations in 2023 and 2024, is projected to deliver an average saving of £41 per household over the next twelve months. The council intends to fund this discount by utilising money from its reserves, ensuring that frontline services remain protected.
Strategic Financial Balancing Act
To maintain crucial local services, the council's proposal involves increasing council tax bills by the full 4.99 per cent permitted by government guidelines. However, in a strategic move to alleviate the financial burden on residents, every household in the borough will receive a two per cent rebate. This approach is designed to reduce the overall cost to local residents while ensuring that vital social services continue to receive adequate funding.
Budget Meeting and Implementation Timeline
The proposal has been carefully developed in advance of the council's budget setting meeting, scheduled for later this month. During this meeting, councillors will determine the final council tax levels for the upcoming financial year. If the proposals gain approval at the budget setting meeting on Wednesday, February 25, the discount is planned to be applied to bills before they are issued to households at the beginning of March.
Financial Implications and Eligibility
The estimated cost of implementing the discount scheme for the 2026/27 period is approximately £3 million. For Band A homes, which constitute 53 per cent of properties in the Rochdale borough, the annual additional charge will amount to just £1.16 per week after the discount is applied. It is important to note that the discount will not be extended to empty properties, ensuring that the benefits are directed towards occupied households.
Council Leadership's Perspective
Councillor Neil Emmott, leader of Rochdale Borough Council, emphasised the dual focus of the proposal. He stated, "Our proposal for this year's council tax bills is about ensuring the continued delivery of high-quality value for money services, while ensuring residents have a discount on their council tax to help with their household budgets."
He further elaborated, "We are protecting frontline services across Heywood, Middleton, Pennines and Rochdale and ensuring any increase to council tax is fair and balanced. Combined with our recent cash injection of £3.5m through the Ward Capital Fund, this underlines that not only are we protecting services, we are investing in future growth, delivering the bread and butter initiatives that matter most to people and providing a discount off residents' council tax bills."
Councillor Emmott expressed pride in the comprehensive package of measures, adding, "As leader of the council, I am proud of the package of measures we will be putting forward on February 25 and I hope they receive the backing they deserve."
This proposal represents a significant effort by Rochdale Borough Council to support residents during challenging economic times while maintaining the quality and availability of essential public services throughout the borough.
