Council tax and free school meal cost rises proposed in Oldham

Council tax in Oldham is set to increase by almost three per cent and an increase in the cost of free school meals in the borough has also been proposed. 

Revealing its proposed budget for 2021/22, as well as Medium Term Financial Strategy for 2021/22 to 2023/24, Oldham Council said the plans came after 2020 was "an incredibly challenging year for the borough". 

The council said an increased demand on its services throughout the year, combined with budget reductions of over £200 million having to be implemented over the last decade, has resulted in "a major budget challenge". 

The Local Government Association estimates that councils in England face a £2.5 billion funding gap following lost income and additional costs during the pandemic.

Early in the pandemic, the government committed to compensating councils for the cost of tackling the crisis but Chancellor Rishi Sunak at the Budget told councils to raise council tax by five per cent to make up for the shortfall. 

Whilst the council insists it means a rise is necessary, councillors are proposing limiting the increase to 2.99 per cent, subject to confirmation at Budget Council on 4 March 2021.

An increase in the cost of school meal charges is also being suggested, from £2.40 to £2.55 for paid and free school meals and £2.60 to £2.75 for adult meals.

This is in addition to agreeing an incremental 5p increase from the new September 2021 term, over the next three years, to "address forecast national pay increases and food costs". 

Oldham Council Leader Sean Fielding said: “2020 was an incredibly difficult and challenging year for Oldham. I’ve seen how hard our community has been affected by the Coronavirus pandemic and the resulting extra costs the council has faced to support those who have needed help.

“We have spent every penny needed to keep Oldham residents safe whilst working under very difficult circumstances. Unfortunately whilst working under greater financial pressure than ever we now have no choice but to raise council tax this year. This was not an easy decision for us to make knowing that many people across the borough are already struggling to pay their bills.

“The Chancellor encouraged us to increase council tax by up to 5% to plug the shortfall created by tackling the Coronavirus. While I’m glad we have been able to limit the rise to 2.99%, I know even a small increase can make a big difference to people’s lives so we have been mindful of this and only raised it to where absolutely necessary." 

He went on to say: “The increasing cost of school dinners is another incredibly difficult decision to make, but one that in these unprecedented times means we have little choice. This course of action is taken very reluctantly and I recognise the impact this will have on family’s finances and school budgets.

“We are committed to nutritious, quality meals and are subsiding school dinner costs where we can. The option we are taking forward represents a compromise position, where children having access to nourishing meals being our priority.

“I know a number of families who are eligible for free school meals have yet to sign-up and claim them, so I encourage them to do so.

“None of these decisions are taken lightly, but we must ensure we the council is in a strong position financially moving forward.

“Last year, we came together as a borough and as Team Oldham to face huge challenges together, and I couldn’t have been prouder of our response. I know this year the resilience and strength of our community will again get us through these difficult times.”