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# Councillors in Tamworth told savings will be needed to balance the books
- URL: https://lichfieldlive.co.uk/councillors-in-tamworth-told-savings-will-be-needed-to-balance-the-books/
- Published: 2026-08-04T08:54:17.000Z
- Updated: 2026-08-04T08:54:17.000Z
- Description: New unitary authority set to inherit financial challenges facing borough council.
- Author: Jonathan Sutton, Local Democracy Reporter
- Tags: Tamworth

LEADERS at Tamworth Borough Council have been warned that savings of £3.5million per year will be required in order to balance the budget from 2029\. 

It comes as the budget deficit is predicted to reach £3.7million by 2030-31.

Finance chiefs are predicting that by the end of 2026-27 the budget deficit will reach £1.096million – and that shortfall is set to increase every year throughout the medium term financial strategy until it reaches £3.761m in 2030-31.

Reserves are set to be used to cover the budget gap, but these will run out after 2028-29.

The figures assume that council tax increases by the maximum of 2.99% each year, along with implementing an already agreed savings plan.

A report to council leaders describes the current situation as "significant" and warns that the use of reserves is "unsustainable".

Due to local government reorganisation it is likely that the new South and Mid Staffordshire unitary authority will inherit the council’s financial troubles.

Under the current timeline, elections to the new local authority will take place next year in May 2027\. All existing districts, boroughs, the county council and Stoke-on-Trent City Council will be abolished in March 2028\. 

A report to council leaders states:

> "Although the 2026-27 local government financial settlement is more positive than had been expected – and the three year period provides more certainty – members will be required to make difficult decisions about funding services in the future.  
>  
> "Even with implementing the maximum available increase in council tax, the council faces significant financial challenges. Budgets are currently being balanced by the use of reserves and balances which is not sustainable.  
>  
> "Projections identify that there is a significant deficit from 2026-27, increasing as the impact of the Fair Funding Review and Business Rates Reset is felt over the three year settlement period.  
>  
> "General Fund balances are sufficient to cover the deficit and leave the required minimum level \[£500,000\] over the three-year period to 2028-29\. However, savings approaching £3.5million per year are required from 2029-30 in order to balance the budget."