Council Tax hike of 4.99 per cent approved by Peterborough City Council

Councillors signed off on the revenue budget for 2026/27, which includes a proposed Council Tax increase of 4.99 per cent at yesterday’s Full Council Budget meeting (February 25),

Cabinet Member for Finance and Corporate Governance, Councillor Mohammed Jamil (Lab) explained to the chamber the proposed 4.99 per cent hike will consist of a 2.99 per cent general Council Tax and 2.0 per cent Adult Social Care precept.

This he said, would equate to an increase of £1.68 a week for a Band D property compared to the current financial year.

When pressed by the BBC’s Local Democracy Reporting Service how much this would represent to Band D residents in Peterborough over the course of the year, Cllr Jamil said:

“Over the course of a year it’s about £80-something,” he said, adding, “Still one of the lowest in the East of England.”

The yearly Band D rate will rise to approximately £1,836.72 in 2026/27, an increase of £87.30 on the £1,749.42 residents currently pay.

Councillors exchanged a range of views on the subject during a long yet cordial debate.

Councillor Ormston (Independent) acknowledged that, while the final budget affords the city council a “genuine chance of moving from a position that often feels simply like managing decline to a position of investing in our services” he expressed concern that “residents are still being asked to shoulder a 4.99 per cent Council Tax increase.”

Cllr Jamil was keen to assure rate payers that their payments are valued and as such will be used for the city’s collective benefit:

“The money that they [residents] give us will be treasured and it will be valuable to make sure we don’t have to make cuts in adult social care or in children’s services,” he said.

Councillor Marco Cereste (Conservative) spoke passionately about financially vulnerable residents having to pay out even more on their rates:

“They can’t afford to pay the bills!” he thundered.

“We have inflation running at three per cent and we’re about to put our Council Tax up by basically five [per cent]?”

Cllr Jamil explained that help would be made available to anyone who may struggle to make ends meet during the next financial year:

“Rest assured we are doing everything,” he said, “and one of the other things we are looking at is the Council Tax support scheme for next year which those people who are finding it difficult [to pay their rates] will be able to tap into.”

The vote to approve the final budget and Council Tax increase was: For: 39; Against 1; Abstained 12.