Despite significant financial pressures, we’re working hard to protect the essential services residents rely on while maintaining a stable financial position.
Understanding the challenges facing councils
For the last 15 years, government funding to councils has steadily declined in real terms.
Cllr Mark Roberts, Leader of Stockport Council, said: “This is why fair funding matters. Like councils up and down the country, we are facing serious financial pressures, but unlike many other councils, we are not receiving the same support or funding. The cost of running local services continues to rise, while more residents and businesses are turning to us for support. That growing demand is stretching council budgets everywhere.
“A large part of what we spend goes towards supporting our most vulnerable residents. That must remain our priority, even though it inevitably means there is less funding available for other valued local services.
“The Government says our funding will rise in the coming years, but that increase assumes higher Council Tax rather than new money coming into Stockport. Even then, it is well below what similar councils are receiving. Stockport misses out on funding streams that many other councils benefit from, despite facing similar pressures.
“Despite these challenges, we are managing our finances responsibly, making sure every pound is used carefully and effectively. We have taken difficult decisions, focused on value for money, and explored every opportunity to maximise funding, all while protecting essential services. We will continue to make the case for funding that properly reflects the needs of our borough.”
The 2026/2027 budget in numbers
Government Funding: Stockport’s increase is 4.95% below the 7.98% national average for Metropolitan Boroughs and 3.11% below the 6.14% England average.
Government Funding: Stockport receives less Government funding per person than most similar areas. This year works out at £1,167.90 per resident. If we had received the same as the average metropolitan borough (£1,337.40), we would have had around £52 million more. If we had received the England average (£1,319.61), we would have had around £46 million more.
We spend as an example: £2.6million on libraries, £6million on highway maintenance, £3.8million on street lighting and £4.4million on maintenance of our greenspaces.
Where funding comes from
- £217million raised from Council Tax (including Adult Social Care Precept)
- Council Tax Impact: £1.99 per week increase for a Band D property
- £139million raised from Business Rates
- £19million comes from government funding
What this means for residents
Council Tax increase
- Council Tax will increase by 4.99% (2.99% general increase + 2% adult social care precept).
- this equates to an increase of £1.99 per week for a band D property
- even with this increase, 75.5% of Stockport’s service budget supports essential services for vulnerable children and adults
Why Council Tax is increasing across Greater Manchester
Across Greater Manchester, Council Tax is set to increase in all 10 boroughs. Many councils, including Stockport, are having to apply the full 4.99% rise allowed without a referendum because Government funding assumes local authorities will do so. Within this, 2% is specifically set aside to support adult social care, helping us meet increasing demand and rising costs.
You’ll also see changes to mayoral precepts, which fund policing, fire services and other regional initiatives. For example; for a band D property:
- the police precept will increase by £15
- the mayoral precept for fire services will rise by £6
- the general mayoral precept will increase by £19
What the national settlement means for Stockport
Stockport’s funding will rise by around 3.03% in 2026/27 and 7.53% by 2028/29, compared to a metropolitan borough councils an average increase of 7.98% and 19.8% by 2028/29 and an England average of 6.14% in 2026/27 and 15.52% by 2028/29.
| Increase | Stockport Council | Metropolitan Borough Councils average | England average |
|---|---|---|---|
| 2026 to 2027 | 3.03% | 7.98% | 6.14% |
| 2028 to 2029 | 7.53% | 19.8% | 15.52% |
However, this figure is based on assumed increases in Council Tax rather than representing new funding provided directly to the borough. Even with these assumed increases, the overall level of funding available to us remains below that received by many comparable councils.
The majority of our budget is spent on statutory services that it is legally required to provide, including care and support for vulnerable adults and children. This significantly limits how much funding we can redirect to wider neighbourhood services and improvement programmes, particularly when overall funding does not keep pace with demand and inflation.
Stockport is home to both some of the most deprived and some of the most affluent communities in the country. We continue to make the case for a funding system that properly reflects this, alongside the cost of delivering services locally and the ongoing financial pressures facing residents.
How we are protecting essential services
To set a balanced budget, we’ve identified savings of £8.037million in 2026/27. This includes £6.537million in efficiency savings through new ways of working and improvements to how we deliver services.
These changes form part of a wider programme focused on digital advancement, contract management, vacancy and workforce planning, service reviews and income generation. Together, these measures help make sure that our staff and resources are used effectively while prioritising frontline services.
We’re continuing to take a proactive, responsible approach to financial management. By continually reviewing how services are delivered and identifying opportunities for greater efficiency and value for money, we’re working to maintain stability during a period of significant national pressure on local authority budgets.
Support for residents
In making our decisions, we have sought to minimise the impact on services that support Stockport’s most vulnerable residents and businesses. Support remains available for residents experiencing financial hardship through the cost-of-living support offer.
Cllr Jilly Julian, Deputy Leader of Stockport Council and Cabinet Member for Finance and Resources, added: "The national picture for local government remains extremely challenging. Councils across the country are facing rising costs, growing demand for services, and funding that simply hasn’t kept pace. While the multi-year settlement provides welcome certainty in principle, it is not adequate to meet the real pressures we face. Unfortunately, the government settlement is positive for many councils and extremely damaging for others.
“For Stockport, that means making tough choices while keeping an eye on the long term. We’re focused on protecting essential services, supporting our most vulnerable residents, and continuing to push for fairer funding that reflects the real needs of our borough. We will not give up on fairer funding that benefits our residents.
“This budget does not stretch as far as other councils this year, but it does reflect Stockport’s commitment once again to doing more with less. Our teams are working tirelessly to make every pound count, investing in prevention, innovation, and the services that make a real difference in people’s lives. It’s not easy, but we’re focused on keeping Stockport a great place to live, work and visit for everyone.”