Trafford Council approved to raise council tax by over £120 on average

Trafford Council will be allowed to raise council tax by over £120 for the average house this year as it works to address a £12 million budget gap.

The government confirmed its final funding settlements for 2025/26 today, naming Trafford as one of just six councils in England allowed to increase council tax beyond the usual 5 per cent cap. Trafford will be permitted to raise bills by 7.49 per cent, including a 2.5 per cent uplift above the standard referendum limit.

The increase means Band D households will see their council tax rise by just over £120 a year or around £2.31 per week. Despite the hike, Trafford Council says its rates will remain the second lowest in Greater Manchester.

Council Leader Tom Ross said the authority had been grappling with “significant ongoing financial challenges” for years.

“Historic funding deficits and increasing cost pressures and a rising need for services especially among children’s and adult social care, compounded by the many years of council tax freezes, mean it is becoming harder to deliver what our residents and businesses need while balancing our books,” he said.

Ross added that the council had closed budget gaps totalling more than £300 million since 2010 but now faces one of its toughest financial years yet.

Council tax accounts for 60 per cent of Trafford’s income to fund local services.

Deputy Prime Minister Angela Rayner said the government had only approved emergency tax rises for councils with below-average rates. Alongside Trafford, the other councils granted permission to exceed the cap were Newham, Windsor and Maidenhead, Bradford and Somerset.

“These are difficult decisions that the government has not taken lightly,” Rayner said.

“We recognise the importance of limited increases in helping to prevent councils from falling further into financial distress but we have been clear that this must be balanced with the interests of taxpayers.”

Trafford has also applied for a capitalisation loan facility, with a decision expected in the coming weeks.