OAKHAM TOWN COUNCIL TAX BILLS TO RISE Is Your Money Being Spent on Progress or Paperwork?
By Local Democracy Reporter
Residents of Oakham are facing another increase in their council tax as Oakham Town Council prepares to sign off on its 2026/27 budget. While the council highlights its commitment to community services, a closer look at the balance sheets reveals a growing trend of high staffing costs and an administrative bill that eats up nearly half of the total budget.
The Council has proposed a total precept demand of £306,777 for the upcoming financial year. This represents a 4.6% increase over the previous year's figure of £293,294. Despite the Finance Committee describing this as "prudent fiscal management" in the face of inflation, the rising cost of local governance is likely to draw scrutiny from households feeling the pinch.
The most striking figures in the new budget relate to the cost of the council's own bureaucracy. The total "General Administration" bill has reached a staggering £162,900.
Salaries, pensions, and payroll management are budgeted at £105,600 representing the single largest expense for the council.
Rent and business rates (NNDR) for the council offices total £17,850.
Professional Fees: A significant £8,000 has been set aside for legal expenses, with another £3,000 for accountancy and audit fees.
The budget includes £2,000 for Chairmans' Allowances.
When calculated against the total expenditure of £373,050, approximately 43.7% of all council spending is swallowed by general administration.
What Do Residents Get in Return?
While administrative costs soar, the council allocates 56.3% (£210,150) of its budget to direct community benefits. While this is the majority of the spend, critics may argue that for every pound paid by the taxpayer, nearly 44p is spent just on the cost of "running the council" before a single flower is planted or a street light is turned on.
Direct community "benefit" costs for 2026/27 include The Oakham Hopper a £29,000 contribution to keep the free bus service running.
£35,000 for Christmas decorations and £17,500 for floral displays.
£25,000 for community street lighting and £5,800 for community CCTV.
£34,000 for grounds maintenance and £10,500 for planned maintenance of play equipment.
The Victoria Hall Factor
The budget also hints at future spending, with £12,000 placed into an "Ear Marked Reserve" for a potential move to Victoria Hall. The council describes this as "futureproofing" and a way to secure a "valuable community asset," though it remains to be seen if moving the administrative hub will offer better value for money for the residents of Oakham.
The full budget and precept demand will be presented for approval at the Full Council meeting on Wednesday, 14th January 2026.
Budget Breakdown at a Glance:
Total Expenditure: £373,050
Precept Demand: £306,777 (Up 4.6%)
Staffing Bill: £105,600
Admin vs. Action: 43.7% Administration / 56.3% Community Services.
Based on the budget documents for the 2026/27 financial year, Oakham Town Council has a total of £129,298 in reserves.
These funds are divided into two main categories:
1. General Reserves (£99,178)
These are unallocated funds held to ensure the council remains financially stable and can cover unforeseen costs.
2. Earmarked Reserves (£32,000)
These funds are set aside for specific future projects or potential liabilities:
OTC Buildings Maintenance (£15,000): Specifically reserved for the upkeep of council-owned property.
Move to Victoria Hall (£12,000): Allocated to support "futureproofing" and the potential relocation of the council offices to the Victoria Hall building.
Capital Expenditure for Christmas Lights (£35,000): Designated for the purchase or significant upgrade of the town's festive lighting.
Editor’s Comment: The 44p Machinery
When we look into the staggering administration costs at Oakham Town Council, the figures are difficult to reconcile with standard practice. Guidance for the non-profit and grant-making sector from the UK Government often suggests that administration costs should ideally not exceed 10% to 15% of an overall budget.
While it is true that larger unitary or county councils typically boast lower administrative percentages simply because they benefit from "economies of scale" that a small town cannot match there is a point where the "engine room" begins to overshadow the journey.
The 43.7% Reality: At Oakham, we have reached a point where for every £1.00 collected via your precept, nearly 44p is spent on the "machinery" of the council. This covers the salaries, office rent, legal fees, and audits required just to keep the doors open.
Only after that 44p is lopped off the top does the remaining change reach the streets in the form of the things you actually see: bins, floral displays, Christmas lights, and street lighting. It is the remainder that pays for the CCTV that keeps us safe, the litter picking and grass cutting across our three parks, the summer band concerts, and the Oakham Hopper Bus.
As the council moves to increase the precept by another 4.6%, residents must ask themselves: are we paying for a community that thrives, or are we simply paying to maintain the machine that manages it?
