Budget and Council Tax statement from Jonathan Davies, Director of Finance

These services provide safety and support to over 450 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 is increasingly challenging as the cost of providing these services is increasing due to inflation and growing younger and older population.

During the financial year 2025/26 the council plans to spend £847m on the provision of a wide range of services to Stockport residents. This includes £278m for schools which will be met by dedicated government grants, and £67m on the provision of council housing which is met primarily from rent income. After taking account of this, income from fees and charges and a number of specific grants the 2025/26 net revenue budget for council services has been set at £356m.

What is the cost of providing services?

How is the council funded?

Local taxation

Local taxation is an important part of the council’s resources used to fund the provision of essential services supporting Stockport residents and businesses. Around £206m (57.9%) of the council’s resources is from Council Tax income (including the Adult Social Care Precept). In addition to Council Tax, around £98m (28%) of the council’s resources is from Business Rates income.

For 2025/26 Government set the limit for increasing the council’s element of Council Tax before triggering a local referendum at 4.99%. Government continues to place a heavy reliance on Council Tax to fund local services and assumes councils will increase Council Tax by the maximum allowable increase in its calculation of councils’ core spending power (the amount of resources Government calculates that each council needs to deliver local services). In addition, the Adult Social Care Precept has become embedded in Government’s funding allocation to support the increasing costs of social care services to vulnerable residents.

The council has to balance the need to minimise the impact of Council Tax increases on residents whilst ensuring the council’s financial sustainability over the medium-term period. In doing this, it is recognised that a Council Tax increase below the 4.99% maximum allowable increase, results in forgone income. This is income that Government expects the council to collect to fund the provision of local services.

Following careful consideration, Council Tax will increase by 4.99% in 2025/26. Of this, 2% relates to the increase to the ‘Adult Social Care Precept’ to provide the council with funding to meet the increasing cost of providing adult social care services to vulnerable residents across the Borough. For a ‘Band D equivalent’ property in Stockport a 4.99% increase set by the council equates to a Council Tax charge of £2,076.06 in 2025/26, a £98.67 annual increase.

The council recognises difficulties residents are experiencing with the increased cost of living and financial hardship in consideration of Council Tax increases. The council provides support to these residents through its Local Council Tax Support scheme, Resident Advice Service, and discretionary support. Further detail on this support is available on the council’s 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 £14 has been set for the Mayoral Police and Crime Commissioner Precept and increase of £16 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 £2,475.31 in 2025/26, a £128.67 annual increase.

The table below shows the Council Tax charge and annual increase for each band including the GMCA Precepts.

2025/26 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 2025/26 three year Capital Programme is £223m in total and includes capital schemes to deliver capital plans as follows:

• Highways and Infrastructure: this includes capital schemes: A34 Corridor Improvement Plan, Cheadle Railway Station, Street Lighting Investment Programme and Merseyway Car Park Waterproofing
• Housing: this includes capital schemes to support the programme of housing general capital works and the Affordable Housing Programme
• Regeneration: this includes capital schemes to support the regeneration of the Town Centre and District Centres including major schemes to support the regeneration of Weir Mill, Cheadle Eco Business Park, and the Academy of Living Well

The Capital Programme is funded by capital grants and contributions from Government and other third parties, revenue contributions to capital spend and borrowing.

Further details of the council’s 2025/26 Budget, including details of the Council Tax, GMCA Precepts and GMCA Levies are available on the council’s website at what your Council Tax pays for.

Jonathan Davies, Director of Finance