Trafford Council has published its final budget for 2026/27, with leader Tom Ross pledging "multi-million pound investment" in roads, parks and services for vulnerable residents.
But the council's own budget document reveals a £27.1 million funding gap still to be addressed over the next two years, with the finance director warning that "the financial risk the Council is exposed to... has never been greater."
The budget, which will be voted on at full council on March 5th, includes a 7.49% council tax rise, £17 million in savings and a £12.64 million emergency loan from the government - the second year running the council has required such support.
Finance director Graeme Bentley's statutory assessment states that "the financial risk the Council is exposed to, given the impact of the Fair Funding Review, has never been greater."
In January's draft budget, he warned that without additional sustainable funding, "a S114 notice will be a very strong possibility in later years." The final budget notes that while the position has improved, further government lobbying "will help avoid the risk of a S114 notice". A Section 114 notice is the formal process by which a council declares it cannot balance its budget.
Council reserves are projected to fall from £69 million to £38 million by 2028, described in the budget as "low" with "very little room for manoeuvre."
Schools budget deficit
Separately, the council faces a growing deficit on its schools budget, driven by rising demand for special educational needs support. This is projected to reach £67 million by 2028.
The government has agreed to cover 90% of the deficit accrued up to March 2026, but the council warns demand continues to rise.
Council tax rises
Council tax will rise by 7.49% - the same increase as last year. For a typical Band C property, the most common in both Altrincham and Trafford, bills will rise by £141 to £2,026.48.
Property values in Altrincham are higher than the borough average, with over 32% of homes in the higher council tax bands compared to 17% across Trafford. Band D properties will see an increase of £159, while Band G faces a rise of £265.
The budget assumes further increases of 4.99% in both 2027/28 and 2028/29.
Service changes
The budget includes a proposal to reduce subsidies on traded services to schools, including catering and cleaning. The document states this "may result in the possibility where the Council cannot recover its costs or may withdraw from the service."
The £12.64 million government loan must be repaid over 20 years, costing £1.15 million annually.
What the council says
Cllr Ross said the council had "addressed budget gaps of around £330m" since 2010 and had been "recognised by independent experts as being a well-run council financially".
He blamed the government's Fair Funding Review, which has given Trafford a funding increase of just 3.8% over three years compared to a national average of 15%.
"Trafford is a significant outlier facing real term reduction in support over the next three years. We continue to maintain a dialogue with ministers and government officials," he said.
Greater Manchester Mayor Andy Burnham also offered his support to the council last week, saying the Government had not “been fair” to the authority and has not “responded to some of the challenges this council has”.
The council confirmed there are no plans for compulsory redundancies and said it would support residents facing financial hardship through its council tax support scheme and Crisis and Resilience fund.
