Trafford Council is proposing another council tax increase as it continues to struggle with a multimillion-pound shortfall in its finances.
Draft budget proposals for 2027/28 reveal that the council originally faced a £38m funding gap. Although savings and changes to how services are delivered are expected to reduce that figure by around £30m, an £8m shortfall remains.
The proposals also anticipate a 4.99 per cent increase in council tax from April 2027, following increases of 7.49 per cent in each of the previous two financial years.
Trafford's ongoing financial problems
The latest figures highlight the financial difficulties Trafford Council has faced for several years, with rising demand for services, increasing costs and funding pressures all contributing to its budget problems.
The council has relied on Exceptional Financial Support (EFS) from central government to balance its books in each of the past two years. This has included permission to borrow money to cover day-to-day spending, creating repayment obligations for future years. Finance chiefs hope further exceptional support won't be necessary in 2027/28, although the council has yet to close its remaining £8m gap.
A one-off government grant of £7.5m, spread across two financial years, is also helping to support the council's programme of changes and savings. However, temporary funding and cost-cutting measures do not remove the underlying financial pressures.
In an independent review published in 2025, the Local Government Association identified Trafford's structural budget deficit as a major concern.
The review acknowledged that Trafford receives relatively low levels of funding, but also highlighted the impact of previous decisions to freeze council tax for five consecutive years between 2010 and 2015. It estimated that the council would have had an additional £14.4m in annual income had council tax increased by the permitted amounts during that period.
The review also warned that Trafford's financial reserves had fallen to the lowest level in Greater Manchester at the time, making continued reliance on those reserves unsustainable.
What does this mean for residents?
The most immediate potential impact for households is another council tax increase.
The proposed 4.99 per cent rise would follow two consecutive increases of 7.49 per cent, both of which required special government permission to exceed the usual referendum threshold. Trafford Council points out that residents would still pay the second-lowest council tax in Greater Manchester, but another increase would add to household bills at a time when many families are already managing higher living costs.
Meanwhile, the council is working to reduce spending across several services. Measures include reducing its reliance on expensive bed and breakfast accommodation for homeless families, expanding local fostering and supported accommodation for vulnerable young people, and changing how adult social care is delivered. The council is also introducing more digital services and technology, including Microsoft Copilot, to improve efficiency and reduce costs.
Council leader Tom Ross says there are no plans for compulsory redundancies and that protecting frontline services remains a priority.
Alongside the savings proposals, Trafford Council has announced plans to spend around £5m on road repairs, more than £40m on children's services and schools, and £17m on leisure services. Further spending is planned for town centre improvements and affordable housing.
These are significant figures, although the announcement does not make clear how much represents new investment rather than previously committed funding or which specific projects will benefit Sale. For local residents, the question will be how much of the proposed spending translates into visible improvements to roads, public facilities and services in their neighbourhoods.
The draft budget will be discussed at Trafford Council's Executive meeting on Monday 19 October.
