Council Tax hike of 9.99% under consideration as Peterborough City Council tackles £23 million budget gap
Array of cuts proposed to services
Council Tax could rise by up to 9.99 percent next year as Peterborough City Council considers a range of increases to balance its budget and improve services.
The near 10 percent hike in Council Tax bills is one of a number of options local authority leaders are pondering as they work to meet rising demand for care services, historic underfunding, high interest rates and a four year run of Council Tax freezes.
The measures, if approved by the council’s ruling Cabinet on December 17, will go out for a public consultation that will last until January 14.
Residents will be asked to give their thoughts on possible Council Tax increases of 4.99 per cent, 6.99 per cent or 9.99 percent.
Increases above 4.99 per cent would require a referendum to give public approval to the increase but it is thought the Government will waive this rule for Peterborough.
An increase of 4.99 per cent would add £83.15 per year to the city council element of the bill for a typical band D property and take the total city council element of council tax to £1,749.42 compared to £1,666.27 in 2024/25.
It would mean a balanced budget but council leader Dennis Jones warned: “Even though there is a draft balanced budget, this isn’t without risk or impact to services.
"The council is considering the possibility of raising council tax beyond the referendum limit to support the delivery of services in a financially sustainable way.”
The council, which plans to spend £220 million on services for more than 200,000 residents and 9,500 businesses, is faced with closing a budget gap of about £23 million in the 2025/26 financial year and has also proposed a number of cuts to services.
It says that for every additional one percent Council Tax levied, just over £1 million would be raised to support the delivery of council services and would cost a household £16.66 per year.
Councillor Mohammed Jamil, Deputy Leader of the Council and Cabinet Member for Corporate Governance and Finance, said: “Not a week goes by without there being a story in the national media of a council which has issued, or is on the verge of issuing, a Section 114 Notice which pauses all but essential spending and involves government commissioners taking over the running of the council.
“This is not the case in Peterborough, and that is thanks to the hard work and determination of cross-party councillors and officers.
"However, it does mean that we have to be honest about the fact that we cannot continue to provide everything we have done previously.
“Next year’s proposed budget will see us continue to spend in areas of greatest need.
“Care for the elderly and vulnerable, support for children and families who need our help, and help for those in housing crisis.
"We’re also prioritising growth and regeneration of the city, knowing it will attract more and better paid jobs for our residents and put more money into our local economy, whilst maintaining all those essential services that residents rely upon such as waste and recycling collections, street cleansing and providing leisure attractions.”