Rochdale council tax freeze would open up £2m per year hole in finances, chiefs warned
manchestereveningnews.co.ukFreezing council tax in Rochdale next year would open up a £2m per year hole in the local authority’s finances, councillors have been warned.
Finance bosses have drawn up preliminary budget proposals for the 2023/24 municipal year based on certain ‘assumptions’- including a 1.99pc rise in the general council rate and a further 1pc increase in the ringfenced adult social care precept.
With these taken into account, there is no ‘budget gap’ - the difference between income and expenditure - forecast for 2023/24, although this stands at £3.4m and £8.2m for 2024/25 and 2025/26 respectively.
However, a report that went to the latest cabinet meeting makes clear that not hiking council tax up by 1.99pc would dent the authority’s finances by £2m each year - with no existing proposals to offset the deficit.
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