Labour run Peterborough City Council squeezed through a Council Tax increase for 2025/26 of 4.99 per cent by just three votes. The increase equates to £1.59 a week for a Band D property. At the full council meeting last night, 21 councillors voted for the 2025/26 budget and medium-term financial strategy up to 2028, with 18 councillors voting against and 11 councillors abstaining from voting.
Labour said it was pleased with the outcome which included support “from a number of Conservative councillors”.
Liberal Democrat group leader, Cllr Christian Hogg, said that his party “could not in all conscience support the budget as it stands” and that Lib Dem councillors voted against it.
Cllr Hogg criticised the budget put forward by the minority Labour administration saying that it “carries a high level of risk around delivery of some of the proposed savings”.
He also attacked the administration for cancelling the final meeting of the cross party “Financial Sustainability Group” when there were still “questions that needed to be answered” about the budget proposals.
“Governance of this council is progressively being pared down,” Cllr Hogg alleged. “leaving councillors with little opportunity to make legitimate challenges.”
He said there had been changes to the agreed position on permits for cars visiting the Household Waste Recycling Centre in that a new provision had been slipped in restricting permits to only one car per household.
Cllr Hogg criticised the proposed cuts to leisure and cultural services. He complained that Cabinet had revised or postponed many of the initially proposed savings but had not reduced the accompanying savings targets.
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“So, they are saying that all these savings are going to be cost neutral?” he said. “Really??”
Cllr Hogg reserved some of his strongest comments for the Community Assets Review which he said had been going on since 2013 but had delivered little, whilst at the same time causing stress and anxiety for local communities.
“We simply can’t cut the heart out of our communities by taking away these vital facilities.” he said.
“We need a bold plan to revitalise and repurpose these buildings to match the needs of our city and our rural areas.
“If we are to hand over these assets to community groups to run, we can’t simply wash our hands of them: we need to stand alongside them and help them through the pitfalls which may lie ahead.”
Labour said the budget has been prepared over several months, with cross-party discussion and input. They claimed that other political parties had the opportunity to propose amendments and alternative proposals, but none chose to do so.
Dennis Jones, Labour Leader of Peterborough City Council, said: “This budget shows the difference a Labour council makes. We are protecting the services our council delivers to residents and making the right decisions to put the council back onto a sustainable financial footing after many years of a Conservative administration asleep at the wheel – both locally and nationally.
“Thanks to additional funding from the Labour government, we have been able to avoid some of the most difficult decisions that could otherwise have been needed.
“This is a Labour-led budget, but we have had open dialogue across all political parties and worked together on the details.
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“There have always been opportunities for other parties to put forward amendments, but none did – and the fact that Peterborough First, Lib Dems, Greens and some Conservatives decided not to vote for this budget tonight despite not having put forward any other ideas shows that only Labour has a genuine plan for our city.”
Labour says Peterborough City Council is in a difficult financial situation “after 14 years of austerity under Conservative governments cut back on funding for councils, leaving local politicians to make difficult decisions about taxation and spending”.
In a statement it said: “The new Labour government has delivered a much fairer financial settlement for councils including Peterborough but cannot reverse over a decade of damage in just one year. Despite this context, the budget is investing in Peterborough and making strides back to a sustainable financial footing.”
Labour says key highlights from the budget include:
- £110 million of capital investment, delivering long-term improvements to our city’s infrastructure and services.
- Proposals to raise standards for private renters through a new licensing scheme for houses in multiple occupation, which will be paid for by landlords and provide some additional funds for the council to tackle homelessness.
- Continued investment in our city’s lido, with improvements such as new food and drink offerings.
- Commitments to increasing opportunities to help young people move into paid employment.
- There are a variety of changes to the way services are structured and managed by the council to save taxpayers’ money while preserving service levels.
- Proposals and funding to introduce some children’s homes for vulnerable children in Peterborough, improving outcomes for this group while keeping them close to their family.
A statement from the city council noted a plan for how the council will spend its £233m budget in the new financial year was to “protect and support those who need help the most and to create a city of opportunity for all has been signed off by councillors”.
The council spokesperson said: “In 2025/26 the council will be spending more money on care for the elderly and vulnerable and supporting children and families. Growth and regeneration of the city will also remain a priority, as it will attract more and better paid jobs for residents and put more money into the local economy.
“The budget also includes savings of £23m, which are needed to meet high and rising levels of demand in areas such as Children’s Social Care, Adult Social Care and homelessness.

“Following public consultation, a number of saving proposals were changed to reflect the feedback received. A proposal to mothball the Lido was amended, meaning the facility will open in the Spring, albeit with the goal of attracting additional income”.
The spokesperson said the proposal to close cafes in the Lido, Flag Fen, Vivacity Premier Fitness, and the Museum and Art Gallery, which are making losses, have also been paused pending work with the operator to seek to achieve at least a break-even cafe offer so they can remain open.
Councillor Mohammed Jamil, Deputy Leader and Cabinet Member for Finance and Corporate Governance, said: “This year’s budget setting process has been one of the most challenging on record, so I am delighted that we have now set a balanced budget for 2025/26. The hard work does not stop here; we now must deliver these savings in full, and we are committed to doing so.
“Once again, I would like to praise council staff for their role in developing proposals and considering new ways of working to make the savings that we needed to. I would also like to recognise those cross-party members who have worked collaboratively as part of our Financial Sustainability Working Group to get to where we are now.
“We will continue to put all our efforts into managing our very difficult financial situation and that includes working with Government on a fairer funding model. The Government is clearly listening and understands the significant challenges facing local government, with more money coming our way in 2025/26 than we expected.
“Difficult decisions remain, as we look to continue delivering the services that our residents rely upon, but we are focussed on our priorities which are to help and support those who need our help the most and to deliver opportunities for all.”
At the same meeting, members signed off the new Corporate Strategy which sets out what the council is prioritising to deliver for its residents and the city in the coming years to create a city of opportunity for all.
It incorporates feedback from residents, including the need for a greater focus on improving the city centre, recognising the value of leisure and culture in the city, and including reference to support for young people with learning disabilities as they transition into adulthood and beyond.
You can read the new updated Corporate Strategy here
Government funding boost for Peterborough Museum
Peterborough Museum is to receive a £137,000 funding boost for much-needed works from the Government.
The Department for Culture, Media & Sport today announced funding for the Museum to replace its lift and improve access as part of a new funding package.
The Museum will also be eligible to bid for more funds over the coming year as the Government announced a major new £270 million Arts Everywhere Fund for arts venues, museums, libraries, and the heritage sector.
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Today’s announcement comes as part of the results of the fourth round of the Museum Estate and Development Fund.
Andrew Pakes MP said: “Peterborough Museum is already a great asset for the city but has the potential to extend the arts and culture even further with the right support. This is a welcome additional boost to help update the museum.
“There is now a one hundred per cent commitment from partners including Peterborough City Council, Friends of the Museum, and others to work together to build on our heritage both as a visitor attraction and for regeneration in the city centre. I will continue to do my bit making the case to government and funders about the value of culture in the city.”
Cllr Dennis Jones, Leader of Peterborough City Council, said: “I’m absolutely delighted to see government recognising the vital contribution that the museum, and arts and culture, makes to life here in Peterborough and all over the country.
“I hope the people of Peterborough will recognise how serious this administration is about creating a thriving arts and culture scene for the city. This is an important step on that path.”