The local authority warned not putting up bills could leave them in an area of “financial failure”
The local authority warned not putting up bills could leave them in an area of “financial failure”
Knowsley Council will raise council tax by the maximum amount available as the borough’s finance lead admitted government support was still not enough. The local authority has confirmed its annual budget for the 2026/27 financial year.
As part of this, households will be asked to dip into their pockets a bit more once again, with a 4.99% increase to council tax bills confirmed. Cllr Jayne Lonergan, cabinet member for resources, said “difficult decisions” had to be made given the council’s increasing financial pressures and rising demand for services.
She said without an increase in rates, Knowsley would find itself in the same situation as “councils who are facing financial failure.” Officials warned if they did not go up, around £4m of funding would be lost annually.
Presenting the annual plan, Cllr Jayne Lonergan, cabinet member for resources, said: “I’m very proud to present this budget for council’s consideration, a budget that supports our residents and businesses and will enable growth in our communities and will deliver major investment where it’s needed most.” Cllr Lonergan said there would be no cuts to services for the seventh year running or job losses at the local authority.
She added: “Many councils across the country are struggling to balance their budgets and in some cases having to request emergency borrowing powers to keep them afloat. Some are even adopting Elon Musk DOGE-like slash and burn approaches which only decimate local services and leave vulnerable residents exposed at the very time they need their council support the most.”
Cllr Lonergan said: “There are always difficult decisions to be made and one of those is around council tax. We all know how the council has had to deal with the pressures of rising costs and increasing demand which weigh so heavily on our budget.
“While the government’s new grant funding certainly helps, it’s still not enough to cover our needs.” The cabinet member said the increase would add around 25p a week to a Band A council tax bill.
She added: “Without this increase, we would find ourselves in the same situation as those councils who are facing financial failure. That is simply not an option.
“Our residents rely heavily on the services we provide and to do otherwise would be devastating to large parts of our communities.”
Cllr Kai Taylor, leader of the opposition Green Party group, said: “I think the council and the administration have tried to do the best in what is difficult circumstances. I think perhaps Cllr Lonergan’s framing of this budget is slightly more optimistic than it should be.
“It is in my opinion a sticking plaster on what has effectively been 15 years of poor funding for local government.” Cllr Taylor said he didn’t think the leadership had “much of a choice” when it came to the council tax increase given the way local authorities are funded.
He added: “We can’t keep putting a plaster on this problem, we can’t keep turning to residents in the poorest communities and say ‘can you pay a little bit more, can you pay a little bit more.’ We’re already getting to the point where council tax is no longer a bill like your internet or your energy, it’s now a significant payment people are having to find every single month and it is hurting communities.”
The authority also endorsed its annual delivery plan. Cllr Graham Morgan, leader of the council, said: “We will continue to deliver effective and high quality services, we will do all that we can to encourage growth that benefits everyone, ensuring our communities and the town centres can flourish, and we will continue to deliver targeted support to encourage fairness and opportunity for those residents facing the biggest challenges.”
