City council launches consultation on 10% council tax rise

Bristol City Council has launched a consultation on the level of council tax that should be set for the financial year 2025/26, at a time when the authority is facing a “significant gap” in its forecasted budget.

The council warned residents that the city is currently facing a £50m funding gap next year, and asked whether they would support up to a 10% council tax rise.

A 10% council tax increase would see Band C household charges rising by £186.28 a year, or £3.58 per week.

The council attributed the “main drivers” of the gap in its forecasted finances to increasing costs and demand amongst adult and children care services, housing support and education services.

The consultation also sought views on an increase to the Social Care Precept - an additional charge that councils, including Bristol, may be permitted to add on top of the Council Tax increase to help pay for social care.

The consultation proposed options from zero to 10% for council tax and zero to 5% for social care.

However, the government has not yet announced how much Council Tax or Social Care Precept councils are permitted to raise next year.

The council said: “In case the government permits an increase of more than 3% in core Council Tax, we have included options for increasing Council Tax above 3% to reduce the savings we must make to local services we provide.

“A 3% increase in Council Tax is the assumption used in our current budget forecast – this would still require us to find £51.6 million in other savings and/or income.”

Cllr Tony Dyer, Leader of Bristol City Council, said: “Setting a balanced budget is not only a legal duty but one of the most significant obligations we face.

“It is never an easy task, and it requires balancing competing needs with protecting critical services. We also need to invest in areas of growing demand while leaving space to seize opportunities that will deliver benefits for our city as they emerge. These decisions cannot be taken lightly, nor will they be taken in isolation from the views and feedback of the people, businesses and communities that make up Bristol.

“This consultation provides an opportunity for us to share our financial forecasts and explain what is driving our financial circumstances. At this stage we want to gather views on two specific aspects of the budget alongside a picture of our overall financial situation.

“Potential changes to council tax and the Adult Social Care Precept won’t in themselves fix the challenges we face over the forthcoming years. We’re currently in the process of identifying the other necessary actions we need to take to balance the books. As these proposed actions emerge, we will consult the public further as required.”

The consultation closes on 19 December 2024.

Lottie Winson