Cost-cutting council approves 4.98 % council tax rise at packed town hall

MEMBERS of the public and opposition councillors packed into Warrington Town Hall tonight as the Borough Council’s Cabinet backed its controversial cost-cutting budget with a 4.98% council tax rise.

Councillors heard from Cllr Denis Matthews that the process of setting the authority’s £208.045m budget had been “extremely challenging” due to rising costs and increased demand for services among the most vulnerable residents along with changes in interest rates and high inflation.
In his report he noted that setting the budget was “more difficult than in any year in recent memory.”
The meeting was attended by members of the public and Liberal Democrat opposition councillors.
The Labour Cabinet members voted to increase council tax by 4.98% in the financial year 2025/6.

A resident in a Band D property will now pay £1,867.79 as a result of the proposed increase agreed by Cabinet.
The following three financial years will see proposed council tax increases of 1.98% each year.
Cllr Matthews explained that the impact of Covid on services and pressures such as inflation being at its highest level for 40 years had impacted the authority.
As a result Warrington Borough Council is currently facing “an £18.039m overspend” in the current financial year, he told councillors.
He said: “We may not feel like it, but compared to other councils, we are doing extremely well.”
Cllr Matthews said there were six councils nationally that had been given permission to set a council tax precept above 4.9% without a referendum.
The pressures in Warrington were from demand for adult social care, Special Educational Needs and homelessness in the town.
He said compared to other councils Warrington is “doing extremely well.”
The Borough is not issuing a section 114 notice – which would mean it’s effectively bankrupt by “maintaining sufficient reserves”.
In its 2025/5 budget, the authority has to find £30.4m savings across the borough with directors of departments being given strict spending targets.
He assured residents that each item in the report had been considered over a “significant period of time and no one wants to reduce services.”
“I must be clear that by making difficult decisions we are saving our council from being unable to set a legal and fair budget with a section 114 notice would result.”
Cllr Matthews said Warrington’s approach was to deliver “innovative ways” of providing services.

There was a moment of levity as council leader Cllr Hans Mundry thanked Cllr Matthews for the “very informative and brief report.”
There was praise, too, from Cllr Nathan Sudworth who said his colleague and council officers had “worked very hard on this budget which demonstrates a marked change in direction for the council which is serious in rebuilding trust in its finances.”
He said the council was “listening to residents.”
But it prompted Cllr Hitesh Patel to say regarding the change of direction that the council’s previous investment in assets had “yielded the council £20m net after costs.”
The report was passed unanimously and will be discussed by the full council at its meeting later this month.