Stockton Officials Propose 4.95% Council Tax Increase for Next Year

Stockton Council leaders have proposed a 4.95% increase in council tax for the upcoming financial year. This decision comes amid significant budget pressures and rising demand for essential services.

Financial Challenges and Budget Gaps

Deputy council leader, Councillor Paul Rowling, highlighted that the authority is grappling with immense financial strains. The predicted budget gap is estimated to reach £6.7 million for the fiscal year 2026-2027, escalating to approximately £18.4 million by 2028-2029.

The Labour-led council anticipates generating £9.9 million in savings through its “Powering Our Future” programme by 2028-2029.

Proposed Tax Increase Breakdown

• Core council tax increase: 2.95%
• Adult social care levy increase: 2%

On February 9, the cabinet will convene at Dunedin House in Thornaby to discuss the budget and medium-term financial strategy. Around 774 responses were collected in the council’s recent “Let’s Talk Money” consultation. Over half of these respondents expressed support for some form of council tax increase, while 39% opposed any rise.

Community Response and Budget Consultation

Cllr Rowling acknowledged the reluctance to recommend a tax hike, emphasizing the critical status of council services. He stated that financial reserves have so far been utilized to manage escalating costs, but this approach is not sustainable.

Seventy-five percent of the counsel’s budget is allocated to children’s and adults’ services. Rowling reassured residents that there is a plan in place aimed at addressing these financial challenges.

Cost-Cutting Measures

Actions taken to manage costs include:

• A review of post-hospital support programs, saving £500,000 annually.
• Senior management evaluations to decrease expenses.

Cllr Rowling also addressed community concerns regarding the proposed £300,000 for urban park events. He clarified that this amount was misinterpreted and would be removed from the budget. Future events will be funded through existing budgets.

Next Steps

The full council will evaluate the cabinet’s recommendations on February 18. Information regarding council tax reduction and additional support can be accessed on a dedicated web page.

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