Trafford Plans 4.99% Council Tax Rise After Two 7.49% Hikes 2026

Key Points

• Exceptional Financial Support (EFS) will not be sought for a third consecutive year for 2027/28 by the Trafford Council.
• The proposed budget for 2027/28 shows that there will be an increase in the council tax amounting to 4.99%.
• This is the highest increase possible without the approval of the Exceptional Financial Support or a referendum.
• The increase in the last two financial years is 7.49% in 2025/26 and 2026/27.
• Without intervention, there will be an estimated shortfall of £60m in the next three financial years.
• It has been assumed that the savings and other measures will bring down the gap to £8.4m in 2027/28 and £24m for three years.
• An estimated £40m of reserves will be utilized by March 2030.
• Some of the savings include parking review, debt management, contract review, property and service transformation.
• Capital expenditure of only £245,000 is estimated for next year.
• Draft budget will go for cabinet meeting next week followed by scrutiny committees and will be voted on by full council in February.

Trafford (Manchester Mirror) October 13, 2026 – It has revealed plans for a 4.99% council tax rise in 2027/28, after two successive years of 7.49% increases, according to newly published draft budget documents.

As reported by the Manchester Evening News, the authority does not intend to seek a third year of Exceptional Financial Support from the Government, despite continuing financial pressure. The proposed 4.99% rise is the maximum increase the council can make without requiring EFS approval or putting the decision to a local referendum.

The draft budget sets out how Trafford intends to reduce a projected £60m budget gap over the next three financial years. Council leaders believe measures including savings, service transformation and the use of reserves can reduce that pressure to £8.4m next year and £24m over three years.

Why is Trafford proposing a 4.99% council tax rise?

Trafford Council is proposing the 4.99% increase because it remains under substantial financial pressure and needs to balance its budget while avoiding a further application for exceptional government support.

The council has already increased council tax by 7.49% in both 2025/26 and 2026/27. Those increases were permitted under the Government’s EFS scheme, which allowed the authority to raise tax beyond the usual cap while also borrowing to help balance its books.

As reported by the Manchester Evening News, opposition members criticised the Labour administration during the earlier EFS period, accusing it of imposing higher charges on residents while reducing services. Critics also warned that the council could “sink faster under the burden of escalating borrowing costs”.

The new draft budget indicates that the council wants to avoid another year of EFS in 2027/28. Officials said the “main goal remains to eliminate the need for EFS in 2027/28”.

How large is Trafford’s budget gap?

Trafford’s budget gap is projected to reach £60m over the next three financial years if no further action is taken. Of that total, £38m of pressure is expected in 2027/28.

The council believes it can reduce the gap to £8.4m next year and to £24m across the three-year period through a combination of measures. These include flexible use of capital receipts, a review of “bad debt” owed to the council, and restructuring the council’s own liabilities.

Around £40m in reserves are expected to be spent by March 2030. Trafford currently has nearly £90m in usable reserves, which are one-off funds that can help balance income and spending but cannot permanently solve ongoing financial pressures.

Officials warned that the approach will not remove long-term financial pressure. They said it is intended to give the council time to transform services and introduce further cost-saving measures.

What savings could Trafford Council make?

The council’s transformation programme focuses on five areas: children’s services, adult services, ending the use of bed and breakfast accommodation, digital innovation and “smarter working”.

In those areas, Trafford aims to increase income and efficiency, reduce demand, renegotiate contracts and review its property portfolio.

The authority is also considering changes to parking charges. These could include on-street parking charges in parts of Altrincham, Sale and Stretford, as well as changes to off-street parking costs, including possible Sunday charges and longer charging hours. According to the draft budget, these changes could be introduced by next summer.

The council is also reviewing how it manages unpaid council tax and other money owed to it. This includes assessing “bad debt”, meaning funds that may be considered uncollectable, and reviewing debt restructuring for the council’s own liabilities.

What does the draft budget mean for capital projects?

Only £245,000 in capital expenditure is proposed for the coming year. The council says the two projects linked to this funding are “invest-to-save” initiatives.

They involve upgrading car park pay-and-display machines and introducing self-service options in libraries.

The limited capital programme reflects a risk linked to using capital receipts to cover day-to-day spending shortfalls. If those receipts are used, the council may need to borrow to meet existing commitments in its capital programme.

What risks could affect the budget plans?

Trafford Council says several risks could disrupt its budget plans, including continuing demand pressures in adult and children’s social care.

The council also faces the consequences of this year’s Ofsted inspection, which rated its children’s services as “inadequate”. According to the Manchester Evening News, improvements are required, although a plan for those improvements had not yet been released at the time the budget documents were published.

Ofsted inspected Trafford’s children’s services between June 8 and June 19, 2026. The inspection judged the impact of leaders on social work practice and the experiences and progress of children who need help and protection as “inadequate”, while children in care were rated “good” and care leavers “requires improvement to be good”.

Trafford Council said after the inspection that its immediate priority was to respond “quickly, clearly and in a way that leads to sustained improvement in services for children and families”. It said work was already under way to strengthen practice, oversight and decision-making in areas including the front door, safeguarding responses, management oversight and support for children and young people.

Separately, Trafford Council confirmed that Dr Risthardh Hare would join as interim corporate director of children’s services from October 12, 2026, while recruitment for a permanent director continues. As reported by the Messenger Newspapers, the council said Dr Hare is a qualified social worker with more than 20 years of leadership experience across children’s social care, education, early help and SEND.

What happens next with the budget?

The draft budget is due to be discussed by Trafford Council’s cabinet next week. It will then be considered by scrutiny committees before final proposals are voted on by the full council in February.

Officials said the successful delivery of transformation programmes, expected savings and sustainable budget solutions will be critical to the council’s long-term financial viability. They warned that failure to achieve these objectives could increase the council’s reliance on external support in future years.

Background of the development

Trafford Council sought Exceptional Financial Support after finance officers identified ways to reduce an initial three-year budget gap from £50m to £10m, before the Government’s Fair Funding Review increased the funding gap by a further £24m. The council’s draft 2026/27 budget report proposed an EFS application of about £20.6m, described as a loan repayable to the Government over 20 years.

The council subsequently agreed a 7.49% council tax increase for 2026/27. Trafford’s Council Tax Booklet said the Government agreed a £12.6m loan on condition that the authority increased council tax by that amount for the financial year.

The council has previously said its financial difficulties were partly caused by a lower-than-expected Government funding settlement, which widened its funding deficit by about £24m last year. It also cited historic council tax freezes under the previous Conservative administration as a factor that reduced its income.

Prediction: how will this affect Trafford residents?

For Trafford residents, the proposed 4.99% increase is likely to mean another rise in council tax bills from April 2027, although it would be smaller than the 7.49% increases seen in the previous two years. The final amount each household pays will depend on its council tax band, any parish precept and the final budget agreed by councillors in February.

Residents may also see changes to local services and charges. The council’s consideration of parking fee changes could affect drivers in Altrincham, Sale and Stretford, while the transformation programme may influence how children’s services, adult services, libraries and other council services are delivered.

The council’s ability to avoid further exceptional support will depend on whether it can deliver the planned savings without worsening service pressures. Continued demand in social care and the need to improve children’s services following Ofsted’s “inadequate” findings remain significant financial and operational risks.