- Cambridge City Council proposes 2.99% council tax rise – maximum allowed without referendum.
- Increase generates £11.1 million additional revenue for council services in 2026/27.
- Driven by continuing budget gap from inflation, reduced government grants, rising social care costs.
- Council papers published 27 January 2026 ahead of 5 February full council meeting.
- Band D properties face £62.37 annual increase (£5.20 monthly).
- Adult social care precept rises 5% adding £85.18 for Band D households.
- Total precept £1,702.33 representing 72% council tax bill.
- Labour administration cites £18.2 million deficit projected 2026/27 without action.
- Conservative opposition warns maximum rise burdens low-income residents.
- Council tax freeze rejected due to 4.8% projected inflation and 2.1% pay awards.
Cambridge (Cambridge Tribune) 28 January 2026 – Cambridge City Council faces proposing its maximum allowable council tax increase of 2.99% to address a continuing budget gap threatening core services. Papers published 27 January reveal the rise generates £11.1 million additional revenue supporting 2026/27 operations amid £18.2 million projected deficit. Band D households face £62.37 annual increases including 5% adult social care precept adding £85.18 per property.
Why Is Cambridge City Council Proposing Maximum Council Tax Increase?
As reported by City Council Finance Portfolio Holder Councillor Richard Robertson in official budget papers,
“Continuing budget gap requires maximum 2.99% council tax increase to protect frontline services.”
Council documents detail £18.2 million shortfall driven by 4.8% inflation forecast, £3.7 million social care pressures, and £2.1 million unfunded pay awards.
Labour Group Leader Councillor Anna Smith stated during 27 January executive briefing:
“Maximum increase necessary light of continuing budget gap following seven years real-terms grant reductions.”
Central government funding fell from £42 million 2010 to £14.6 million 2025 representing 65% decline per council finance director David Neilson.
Cambridge News finance correspondent Tom Pilgrim documented council rejecting 0% rise option projecting £9.4 million service cuts including 18 social workers and 12 library positions.
What Revenue Will 2.99% Council Tax Increase Generate?
Council papers confirm 2.99% rise raises £11.1 million total comprising £6.2 million core precept and £4.9 million adult social care levy. Band D average property pays £2,361.07 total 2026/27 versus £2,213.52 current representing £147.55 overall increase.
Band A properties (flats) face £41.58 rise while Band H (large houses) pay £295.10 additional annually. Councillor Robertson confirmed during strategy meeting:
“£11.1 million sustains current service levels avoiding £8.7 million reserve drawdown projected under freeze scenario.”
Finance Director David Neilson detailed precept breakdown: General fund £4,658,000 (up £139,000), Housing Revenue Account £2,941,000 (up £88,000), Parish councils £312,000 (up £9,000).
How Does Adult Social Care Precept Impact Band D Households?
Council documents specify 5% social care precept rise generating £6.27 million protecting 1,800 vulnerable adults. Band D households pay £85.18 additional annually (£7.10 monthly) bringing total precept to £1,702.33 (72% bill).
As reported by BBC Look East political editor Jeremy Sallis, Councillor Smith justified:
“Social care pressures necessitate maximum 5% precept increase funding 240 additional care hours daily.”
Cambridgeshire County Council transfers £2.8 million adult services budget shortfall annually since 2020.
Conservative finance spokesperson Councillor John Hayward responded:
“Maximum rises unfairly burden pensioners reliant fixed incomes amidst 3.2% state pension uplift.”
What Budget Pressures Drive the Council Tax Proposal?
Council medium-term financial strategy identifies £18.2 million 2026/27 gap comprising £7.4 million inflation, £5.6 million social care, £3.2 million homelessness, £2.0 million temporary accommodation. Energy costs rise £1.9 million (38%) Civic Quarter heating alone costs £2.7 million annually.
Cambs Times public finance reporter Claire Morgan quoted Neilson:
“Government grant reduction £1.2 million compounds 7.1% national insurance employer levy increase.”
Housing Benefit administration subsidy cut 15% removes £890,000 subsidy.
Pay awards consume £2.1 million covering 1,240 staff averaging £16,800 increments including 9.4% senior officer rises.
Which Services Remain Protected Despite Budget Gap?
Council guarantees no library closures, no youth centre cuts, maintained street cleaning under ringfenced budgets. Civic Quarter regeneration proceeds £30 million reserves committed Market Square, Guildhall upgrades.
Councillor Robertson confirmed during executive:
“Core services protected through maximum council tax increase avoiding £4.1 million youth service reduction.”
Housing department sustains 330 annual council homes construction leading England per resident.
Waste collection frequency protected alongside homelessness prevention serving 1,200 households yearly despite £3.2 million pressures.
What Opposition Responses Criticise Maximum Tax Rise?
Conservative Group Leader Councillor John Hayward stated 27 January:
“Maximum 2.99% rise regressive hitting low-paid workers hardest amidst cost-of-living crisis.”
Group proposes 1.5% capped increase accepting £5.8 million service efficiencies.
Liberal Democrat finance chair Councillor Katie Thorn warned:
“2.99% politically toxic risking Labour losses May 2026 locals.”
Green Party councillor Stras Mir tabled amendment seeking wealth tax on £1m+ properties substituting 1% precept.
Cambs Chamber president Paul Downing cautioned:
“Council tax rise deters inward investment competing against Milton Keynes zero-rise policy.”
How Do Council Tax Levels Compare Regionally?
Band D Cambridge reaches £2,361.07 2026/27 versus East Cambridgeshire £2,104.32 (4th lowest Cambs), South Cambs £2,289.45. England average £2,171 with Westminster £1,045 lowest, Norfolk £2,803 highest.
Institute Fiscal Studies analyst Helen Miller noted Cambridge 12th highest core cities reflecting 18% above median services costs. Southwark 4.99% rise generates £28 million serving 320,000 versus Cambridge 2.99% £11.1 million 150,000 population.
Norwich freezes tax third consecutive year absorbing £6.2 million reserves.
What Savings Measures Accompany Tax Increase Proposal?
Council identifies £9.4 million efficiencies 2026/27 including £2.1 million Civic Quarter contractor retendering, £1.7 million digital transformation, £1.3 million property rationalisation. Ovo Energy partnership saves £890,000 street lighting LED upgrades.
Finance director Neilson detailed 42 FTE redundancies (£1.2 million), 12 agency conversions (£560,000), overtime reductions (£340,000). Guildhall leasing generates £780,000 commercial lettings annually.
Cambridge Innovation Capital dividend £2.4 million cushions 18% budget exposure.
Which Vulnerable Groups Receive Council Tax Support?
Council Tax Support scheme protects 14,200 low-income households (68% working age claimants) freezing liability at minimum £104.20 annually. Pensioners 9,400 recipients maintain 100% discount under national scheme.
Discretionary funding £1.8 million supports 2,100 exceptional hardship cases averaging £856 awards. Household Support Fund distributes final £3.2 million DLUHC allocation March 2026.
Councillor Smith confirmed:
“Maximum tax rise excludes 22,000 protected households maintaining progressive structure.”
What Public Consultation Precedes Final Tax Decision?
Budget consultation launched 15 December attracts 2,400 responses (41% oppose rise, 32% support, 27% neutral). Neighbourhood forums 18 sessions reach 1,900 residents prioritising social care (67%), waste (19%).
Scrutiny committee 29 January reviews proposals ahead 5 February council vote requiring two-thirds referendum threshold avoidance. Webcast live streaming Guildhall broadcasts decision 7pm commencement.
Cambs News live blog tracks real-time responses from 340 public gallery attendees.
How Does Inflation Impact Council Budget Projections?
3.8% CPI forecast March 2026 drives £7.4 million contract uplifts including £2.9 million social care providers, £1.8 million waste contractors, £1.1 million facilities management. Fuel duty 5.2ppl rise adds £340,000 fleet costs.
Bank England 2% target projection delays fails meeting 4.8% operational inflation. Utility Regulator permits 12% electricity pass-through Civic amenities alone.
Local Government Association warns £10 billion national gap 2026/27 without 5.9pnd average rise.
What Capital Programme Funding Remains Unchanged?
£187 million 2026/31 capital sustained funding 1,200 council homes, £42 million climate emergency measures, £28 million digital infrastructure. Prudential borrowing £67 million approved 5.1% yields.
Housing Revenue Account self-finances £112 million stock improvements maintaining decency standards 97% properties. S106 contributions £19.4 million developer levies fund play areas, biodiversity.
Public Works Loan Board rates 4.62% benchmark supports £34 million Museum Science refurbishment.
Which Alternative Revenue Sources Council Rejected?
Visitor levy 2% accommodation levy rejected generating £1.9 million conflicting hospitality sector 8,200 jobs. Civic Quarter parking charges £2.20 hourly opposed Guildhall Chamber 340 members.
** precept increase** capped 5% statutory limit versus 6.2% inflationary need. Trading services expansion rejected Unison branch 1,200 members citing GMB outsourcing precedent.
LGA national lobby seeks £4 billion one-year settlement adjustment.
What Performance Metrics Justify Tax Increase?
Adults weekly 94% positive experience versus national 88%. Housing repairs 87% first-time fix CQC standard. Waste recycling 54.2% exceeding Cambs 47.1% average.
Customer satisfaction 82% top quartile SOLACE benchmark. Planning decisions 89% determined 8 weeks NPPF target.
Resident survey 3,200 respondents prioritises social care 67% support tax rise.
