Blackpool Council defends position on Council Tax

Blackpool Council’s decision to hike Council Tax up by almost 5 per cent has been slammed by opposition councillors – but the authority has defended its 2026/27 budget.

The council needs to make savings of £12.5m  in 2026/27to pull back from its funding gap – reduced from £16m after there was a small increase in Government funding as part of the final settlement.

But the Labour-led council did not receive as much help from Keir Starmer’s Government as hoped.

Cllr Lynn Williams, leader of Blackpool Council, said the council had therefore had to be “bold” in its action and its budget, which was approved at a special full council hearing.

In a speech at the council’s budget meeting this week, Cllr Williams said the authority had not received the fair help it needed but would” face the challenges with realism and move forward with ambition”.

However, Conservative and Reform opposition councillors said residents should not have to foot the bill in their council tax payments.

The Council’s cumulative debt was reported to be more than £5O0 million last year, due to a number of factors including savage cutbacks from previous governments over more than a decade.

Those cutbacks have, in turn, led to expensive solutions to deal with some of the problems caused by a crippling lack of central funding.

What Council Leader said

Cllr Williams said: “After many years of successive, compound funding reductions across all public services, and despite our best efforts to protect them, our community has had to suffer cuts to preventative and early help services.

“As many of us predicted, as a result we have seen significant and sustained increases in the level and complexity of needs that our most vulnerable people, adults, families and children have – many of whom then need expensive, statutory support

“Sadly, there remains much fragility in our local economy, with many businesses struggling and low pay and insecure employment all too prevalent for the people of Blackpool.

“My colleagues and I had high hopes that the government would deliver a truly ‘fair’ funding review – one that would put towns like Blackpool back in the budget position that we should be in, that our community deserves.

“Sadly, changes to the formula that has been used by government following consultation has delivered something that falls short of what we would consider real fairness – and although we have seen some additional funding made available, it does not come close to what we need to support what Blackpool needs.

“We cannot let this funding challenge stop us rebuilding the support and opportunities that Blackpool needs.”

The 4.99 per cent council tax increase – the maximum amount – will cost the average council taxpayer an additional £1.09 per week, which contributes £4m towards local services.

The council argues that Blackpool currently has the lowest average council tax in Lancashire, at £1,101 and Cllr Williams said: “We will always as a council ensure that there is support available for those in real need and have exemptions for many residents as we have widened the criteria for the council tax reduction scheme to benefit as many people as possible who may be struggling.

“Over 30,000 homes already get a reduction of some form, whether it is because they are vulnerable, on a low income, are carers or live alone.”

What opposition said

But Cllr Paul Galley, leader of the Conservative opposition, said: “We’re on a financial cliff edge and residents are going to pay the price.

“We know the council tax is going up by the maximum amount. Whilst the Council Leader will tell us its the lowest average in Lancashire that’s because we have the highest number of Band A houses, and the highest number of Band Bs, so of course the average will be brought down.

“Let’s compare Band C with every other Band C area, we know we’re higher. Let’s be honest with these statistics, then, don’t distort them.”

Cllr Galley then referenced Labour’s Blackpool South MP Chris Webb, who obtained extra Government funding for Blackpool and stated that he “specifically fought for this extra funding so that Blackpool Council could reduce council tax. Following this news, I have made it clear to the Council leadership that this money should be used in this way. “

Cllr Galley said: “ Why did Chris Webb say that? He knows Council Tax is too high for many people in this town, who don’t qualify for some of the support the Leader says is available and are really struggling.”

He said that last year he had predicted where the council finances would be  and had worked on his own financial plan to deal with Blackpool’s problems, but had been ignored.

Cllr Jim O’ Neill, leader of Blackpool Reform Group, said that while  he had sympathy with the Council Leader in trying to balance the books, the needs of communities like Blackpool were not being addressed at government level.

He said: “Just under two year ago Keir Starmer said there wouldn’t be a penny more on our council tax.

“Yet here we are,  two local budget years later and by April, residents will have experienced an accumative 10.25 per cent increase in their Council Tax.

“At Lancashire Council, Reform’s proposal is to raise council tax by by 3.8 per cent.

“Council tax is desperately in need of reform. It’s still based on 1991 property valuations and is unrelated to need.

“Our bills our significantly higher than those in ultra-affluent areas like Westminster or Kensington and Chelsea.”

He said Blackpool had been overlooked by the government, in favour of “louder voices in the South.”