Council tax rise of 4.99pc set to be rubber stamped in Greater Manchester town

Households in Wigan are set to be hit with a 4.99 per cent council tax increase when the council’s cabinet rubber stamps its budget on Thursday (February 20).

The levy for residents will see the council bridge a budget gap of £7.6m to run its services.

A report from director of finance and legal Sarah Johnston says that Wigan has received total grant funding from central government of £141.2m in its support settlement for the 2025/26 financial year, a rise of £26.4m from this year’s figure of £114.2m.

Her report also shows that Wigan received £7m of the Labour Government’s £600m recovery grant for English councils - aimed at helping struggling local authorities.

Ms Johnston writes: “Although there has been welcome additional funding for 2025/26, this does not cover the compounded effect of real-term cuts over the past 15 years and does not cover the scale of demand-led pressures which require investment. The council must reshape its budget allocations to meet these challenges."

The report also says that further savings of £13.3m an £12.5m will be required in the years 2026/27 and 2027/28 respectively.

However, it also says that there has been ‘no reliance’ by Wigan on its cash reserves - typically used for emergencies - in the 2025/26 budget.

Meanwhile, the Government is consulting on ‘fundamental funding reform’ for local government and says there is ‘a higher weighting’ for deprivation in its recovery grant, which Ms Johnston says ‘signals the intended direction of travel’.

There is also a commitment to a reset of the business rates system.

In 2025/26, Wigan will raise £131.7m from business rates, the total from council tax will be £153.2m which adds up to funding of £285m.

Staff pay deals and chancellor Rachel