Bradford-district council tax set to rise by 4.99% next year

Next year’s Bradford Council budget is also likely to include a six per cent rise in fees for council services ranging from leisure charges to the cost of submitting a licensing application.

Bradford Council’s executive will discuss the authority’s latest financial situation at a meeting next Tuesday – a meeting that will also set out the first steps of putting together the budget for 2026/27.

Last year the council was awarded “exceptional financial support” by Government – allowing the authority to prop up its creaking finances through borrowing and by selling off assets.

In a briefing yesterday, council leader Councillor Susan Hinchcliffe said the most recent financial figures showed the authority was making “good progress” in bringing its finances away from the brink.

This includes a £10.2m underspend this current financial year – which ends in March.

Despite this, the authority will remain reliant on borrowing to avoid bankruptcy in the coming years, and will still need to make over £60m of savings next year.

Cllr Hinchcliffe said the underspend – and an expected Government funding settlement for councils that will be announced before the end of the year – would mean Bradford would need to borrow less than it initially anticipated.

However, the borrowing is likely to be needed for the near future – and the cost of paying off interest will likely remain a huge burden on future budgets.

Finance papers going to the executive next week show the half-year budget for 2025/26 includes a projected underspend of £10.2m.

The £60.6m savings being proposed for next year will include: £11.8m savings that have previously been agreed and consulted on, but not yet implemented; £20m “efficiency improvements” within the Children and Families Trust, which include “better practice, less reliance on agency staff and greater consistency”; £15.8m savings through “improved financial management and performance”; £3.2m in “budget re-alignments”; £9.8m worth of proposals that will go to consultation, including “changes to fees and charges and ongoing service transformation in Adult Social Care to promote independence and reduce long-term care needs”.

A statement from the council ahead of the publication of the documents said: “The council’s financial recovery plan is delivering strong results.

“In 2023/24, the budget was delivered exactly in line with the £80m capitalisation direction agreed with government.

“In 2024/25, spending ended £20m below the original capitalisation direction.

“In 2025/26, the council is currently forecasting to reduce that by a further £10.2m.

“These improvements have been recognised by government and independent bodies, including the withdrawal of the Best Value Notice, a positive report in February this year from CIPFA (the Chartered Institute of Public Finance and Accountancy) and four positive reports from the Improvement Board, which has now stood down.”

Last year’s 10 per cent council tax rise was double the highest amount councils are usually able to charge.

Cllr Hinchcliffe confirmed next year's would be 4.99 per cent (2.99 per cent council tax rise and a two per cent social care surcharge).

She said: “I said the 10 per cent rise was a one off and it will be a one off. We won’t be doing that again; that was a commitment I gave last year and we’re sticking to that.”

Referring to the planned £60m of cuts, she said: “There are no major cuts that people will recognise in their communities. It is more about making sure the council is more efficient and productive.

“We’ve made good progress with the council’s finances. Like councils everywhere, we’ve had to make difficult decisions, but we’re focused on doing this the right way – by improving efficiency, innovating and maximising income rather than cutting vital services.

“We have a seven-year plan to secure Bradford Council’s financial future, and this latest report shows that plan is working. There’s still a lot to do, but the direction of travel is positive and steady.”

The executive will consider the proposals at its meeting on Tuesday. If agreed, a public consultation will follow, allowing residents and organisations to comment on the plans.