These services provide safety and support to over 500 vulnerable children, provide care and support to over 6,000 vulnerable adults, provide transport to school children who need it and provide universal services to residents such as access to libraries, leisure, and green space. Every year the council must balance the cost of providing these services with the income it receives. This continues to be challenging as the cost of providing local services continues to increase, while more residents and businesses are turning to the council for support. That growing demand is stretching the council’s budget.
A reduction in Government funding following a national review means the council will receive significantly less funding than many comparable councils across the country facing similar service demands and cost pressures in the next financial year and beyond. The council’s funding will increase by around 3.03% in 2026/27 and 7.53% by 2028/29, compared to metropolitan borough councils average increase of 7.98% and 19.8% by 2028/29 and an England average increase of 6.14% in 2026/27 and 15.52% by 2028/29. These increases are based on assumed increases in Council Tax rather than representing new Government funding provided directly to the borough. This adds to an already challenging financial position, increasing budget pressures and impacting the council’s ability to fund the cost of local services.
Despite this, the council continues to invest in essential everyday services such as highways, greenspaces, street lighting and libraries. During the financial year 2026/27 the council plans to spend £887m on the provision of local services. After taking account of this, income from fees and charges and a number of specific grants the 2026/27 net revenue budget for council services has been set at £380m.
More than 75% of the council’s service budgets are dedicated to supporting vulnerable residents through children’s and adult social care and SEND services. This includes £94m on Children’s Social Care and Education services, £152m on Adult Social Care, £20m on Public Health, £272m for schools which will be met by dedicated government grants, and £72m on the provision of council housing which is met primarily from rent income. Demand for these services continues to grow and protecting them remains the council’s priority. However, with the majority of the council’s budget being spent on these statutory services that the council is legally required to provide, its ability to fund wider neighbourhood services and improvement programmes, is constrained.
What is the cost of providing services?
How is the council funded?
Local taxation
Local taxation is an important part of the council’s funding of essential local services supporting Stockport residents and businesses. Around £217m (57.2%) of the council’s funding is from Council Tax income (including the Adult Social Care Precept). In addition to Council Tax, around £139m (36.6%) of the council’s funding is from Business Rates income.
Government continues to place councils in a challenging position, where the use of Council Tax to support the funding of local services is expected and thus unavoidable. Government assumes councils will increase Council Tax by the maximum allowable 4.99% increase in its calculation of councils’ core spending power (the amount of funding Government calculates that each council needs to deliver local services). Setting the Council Tax increase below the maximum 4.99% results in the council foregoing income that Government expects it to raise.
To maintain the provision of essential local services needed by residents and businesses, Council Tax will increase by 4.99% in 2026//27. This reflects the Government’s expectation and the importance of the council having a robust and resilient budget for the financial year ahead. For a ‘Band D equivalent’ property in Stockport a 4.99% increase set by the council equates to a Council Tax charge of £2,179.65, a £103.59 annual increase in 2026/27. The difficulties residents are experiencing with the increased cost of living and financial hardship is recognised and carefully considered when deciding on the increase. The council provides support to these residents through its Local Council Tax Support scheme, hardship discretionary support and Resident Advice Service. Further detail on this support is available on our cost of living support webpages.
The council is also required to collect a Mayoral Police and Crime Commissioner Precept and the Mayoral General (including Fire Services) Precept on behalf of the Greater Manchester Combined Authority (GMCA). Increases in these Precepts are set by the Mayor of Greater Manchester. An increase of £15 has been set for the Mayoral Police and Crime Commissioner Precept and an increase of £25 has been set for the Mayoral General (including Fire Services) Precept. The Council Tax charge for a ‘Band D equivalent’ property in Stockport (including GMCA Precepts) is £2,618.90 in 2026/27, a £143.59 annual increase.
The table below shows the Council Tax charge and annual increase for each band including the GMCA Precepts.
Valuation bands
| Bands | A | B | C | D | E | F | G | H |
|---|---|---|---|---|---|---|---|---|
| 2025/26 Council Tax, including GMCA precepts (£) | 1,650.21 | 1,925.23 | 2,200.27 | 2,475.31 | 3,025.38 | 3,575.44 | 4,125.52 | 4,950.62 |
| 2026/27 Council Tax, including GMCA precepts (£) | 1,745.93 | 2,036.92 | 2,327.91 | 2,618.90 | 3,200.88 | 3,782.85 | 4,364.83 | 5,237.80 |
| Increase: annual (£) | 95.72 | 111.69 | 127.64 | 143.59 | 175.50 | 207.41 | 239.31 | 287.18 |
| Increase: monthly (£) | 7.98 | 9.31 | 10.64 | 11.97 | 14.63 | 17.28 | 19.94 | 23.93 |
| Increase: weekly (£) | 1.84 | 2.15 | 2.45 | 2.76 | 3.38 | 3.99 | 4.60 | 5.52 |
2026/27 Capital Programme
The council has ambitious capital investment plans for the Borough to help regenerate the local economy, create jobs, and develop strong communities. The council’s 2026/27 three-year Capital Programme is £278m in total and includes capital schemes to deliver capital plans as follows:
- Highways and Infrastructure, including capital schemes: A34 Corridor Improvement Plan, Cheadle Railway Station, Street Lighting Investment Programme and Merseyway Car Park Waterproofing
- Housing, including capital schemes to support the programme of housing general capital works and the Affordable Housing Programme
- Regeneration, including capital schemes to support the regeneration of the town centre and district centres, for example the major schemes to support the regeneration of Weir Mill, Cheadle Eco Business Park, and the Academy of Living Well
- Council Operational Estate, including the Adswood Depot Redevelopment and Stockport Crematorium
The Capital Programme is funded separately from day to day services, through things like grants, partner investment or project specific borrowing. In many cases, this funding is legally restricted to capital schemes, which means it can’t be redirected to services like social care, waste collection or libraries.
For further details of the council’s 2026/27 budget, including details of the Council Tax, GMCA Precepts and GMCA Levies, you can read:
- our news article on protecting essential services amid financial challenges
- what your Council Tax pays for
I hope this helps explain the challenging financial position the council is managing and the choices made for the financial year ahead.
Jonathan Davies, Director of Finance / Section 151 Officer