Council leaders are proposing a 1.99 per cent tax rise to help plug a £1.75 million budget gap.

Newcastle-under-Lyme Borough Council's draft budget for 2026/27 includes the below inflation increase to council tax along with a number of savings proposals.

The tax hike would see the borough council's annual charge for a Band A property go up by £2.96 to £151.65, while a Band D's would increase by £4.44 to £227.48.

Only a small proportion of the council tax Newcastle-under-Lyme residents pay goes towards the borough council, with the lion's share going to Staffordshire County Council, which sets its charges separately.

The borough council is predicting a £1.75 million budget gap in 2026/26 due to funding pressures.

Council bosses expect tax rise will generate an extra £179,000, while an increase in the number of homes in Newcastle will generate £196,000.

Savings proposals include a restructure of the markets and events team, which is expected to save £37,000, a reduction in printing and postage (£14,000) and a review of contracts (£32,000).

The council is also planning to reduce pension contributions by £601,000 to reflect improved funding levels.

And the council is expecting income from fees, charges and other sources to increase by £87,000 next year. This includes £10,000 from the introduction of pet cremations at Bradwell Crematorium.

Cabinet members discussed the budget proposals at their meeting on Tuesday.

Cllr Stephen Sweeney said the rise is 'significantly below inflation council tax increase of 1.99 per cent' (image via LDRS)

Cllr Stephen Sweeney, cabinet member for finance, said: "When I looked today, inflation was running at 3.6 per cent, so this is significantly below inflation council tax increase of 1.99 per cent.

"This amounts to 10p a week, or less, for 95 per cent of households within the borough."

Council leader Simon Tagg said: "This shows that we can balance budgets, we are a well-run council and that we can keep council tax down.

"We've pledged to keep out increases below two per cent, and this will be the fifth year we've achieved that, making those required savings."

Budget pressures facing the council in 2026/27 include £396,000 in pay awards and £400,000 in one-off cost relating to local government re-organisations.

The authority is currently predicting a budget surplus from 2027/28 onwards.

The budget proposals will now be examined by scrutiny committee members, prior to approval by full council in February.