Double hit as council tax increases and services suffer

by John
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Double hit as council tax increases and services suffer

Residents in Blackpool may soon face a 4.99% increase in council tax and £8.6 million in budget cuts as councillors prepare to vote on the proposed 2025/26 financial plan. If approved, the changes will bring the total spending budget to £218 million while aiming to balance rising costs with service reductions.

The tax hike means that residents living in an average Band D property will pay £2,025 per year towards council services. However, the final bill will be even higher once police and fire service charges are added.

Government Funding and Budget Shortfall

While Blackpool Council has received an additional £17.7 million in funding from central government, it falls short of covering the council’s rising costs. The council estimates that:

  • £5.9 million is needed to cover increasing expenses, including:
    • £1.65 million for national insurance cost increases
    • £1.1 million for the council’s wholly owned companies (e.g., Winter Gardens)
  • This leaves a £4.2 million budget gap, requiring spending cuts.

Where Will the Budget Cuts Be Made?

To balance the shortfall, the council proposes reducing spending in key areas:

1. Adult Services – £3.7m Savings

  • A review of home care services found that some care packages can be reduced.
  • Clients will be encouraged to use alternative community services to promote independent living.

2. Children’s Services – Nearly £2m Savings

  • More funding will come from the NHS for children with complex needs, reducing the council’s financial burden.

Council’s Commitment to Protecting Essential Services

Despite the cuts, Council Leader Lynn Williams emphasized that frontline services will be protected, including libraries and leisure centres. She stated:

“As always, reducing and cutting services is the very last option that we consider. The proposals ensure that our most vulnerable residents and the services that they rely on are safeguarded.”

She also reassured that any efficiency changes in services would be made with priority given to those in need rather than financial constraints.

Rebuilding Financial Reserves

The council aims to replenish its financial reserves, which had dropped to just £33,000. By the start of the next financial year, reserves are expected to rise back to £7.1 million.

Proposed Council Tax Charges for 2025/26

If the 4.99% council tax increase is approved, Blackpool residents will pay the following amounts for the council’s portion of the tax bill:

Council Tax BandAnnual Charge (£)
Band A£1,350
Band B£1,575
Band C£1,800
Band D£2,025
Band E£2,475
Band F£2,925
Band G£3,375
Band H£4,050

Note: These figures do not include charges for police and fire services, which will further increase the total bill.

Blackpool Council is facing rising costs and a budget shortfall, leading to spending reductions and a council tax increase for 2025/26. While frontline services will be protected, adult and children’s services will see cuts to reduce expenses. The final decision on the proposals will be made next week when councillors vote on the budget plan.

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