Council leaders in the Staffordshire Moorlands have approved plans to increase council tax by 2.99%.
Despite being able to balance the budget for the upcoming financial year, the council warned there was “greater uncertainty and risk” in future years.
The move will see households pay £178.21 on a band D property for 2026/27, an increase of £5.17.
Residents in Leek and Biddulph will also see increases in special district expenses.
In Leek, charges will rise by £1.68 to £57.81, while in Biddulph they will increase by 34p to £11.63.
Coun Chris Wood, Cabinet member for finance at Staffordshire Moorlands District Council, told colleagues if the maximum council tax increase was not imposed then the revenue to the council was lost forever.
He said: “The provisional local government financial settlement allows us up to three% increase in council tax.
“It should be noted that the figure does assume all authorities maximise the increase to this level. The way capping or referendum limits work is if the maximum increase is not taken up that opportunity is lost forever, not just the opportunity, it’s the finances is lost forever.
“There is no opportunity to catch up in subsequent years. Having completed the annual budget exercise a balanced budget has been achieved.”
It is expected that the council will incur greater costs than anticipated originally in setting the medium term financial strategy last year as a result of the funding cuts and effects of inflation. The Government’s fair funding and business rates review resulted in a reduction in funding, capped at a 5% loss.
The council is expecting to use reserves to cover in-year deficits in 2026/27 and 2027/28.
The forecast showed a cumulative deficit position of £285,320 over the four years.
In 2028/29 the council is expecting to be in a surplus position and is planned to make contributions to reserves.
Council leader Mike Gledhill said: “We’ve kept to something which I think is always good for councils to do – that there are no cuts to front line services and there are no compulsory redundancies. I think in this day and age that’s quite an achievement.
“Times are hard, things are difficult, the council has to keep mindful of its commitment, its legacy, its operational cost and as we know in the modern world none of these costs seem to go down. So it is important we take sensible, prudent decisions.”
The council is due to be abolished in the local government reorganisation in Staffordshire.
