Tough decisions ahead as council prepares next budget

Town hall finance chiefs arewarning of another tough year as they start the process to set next year’s budget.

They have identified a budget gap of £35m for the three years up to 2028, although potential savings of £9.4m have already been identified. These measures will help to reduce the remaining gap to more than £22m – with the majority of that needing to be found in the first year.

Councillor Sean Thorpe, cabinet member for finance, said: “Once more, we are facing huge challenges in setting the budget for 2025/26.

“This is being caused by insufficient funding, huge increases in costs, and an ever-increasing demand for services, particularly in adults’ and children’s social care which together take up nearly three quarters of the council’s budget.

“We are in the bottom 20% for council funding, and our spending power in real terms has been slashed over the past decade. This has let us to find £150 million in savings over that period.

“As in previous years, we will have to use reserves to shore up the budget and keep services going, but you can only do this for so long.

“Bury is not alone in this challenge – it’s a serious problem faced by councils across the country, who have been under-funded for more than a decade. The only long-term solution is a complete review of the way councils are funded, something that was promised years ago and which we and others have long called for.”

A report outlining the council’s finances is due to be considered at next Wednesday’s (6 Nov) cabinet meeting.

Subject to cabinet approval, public consultation on the budget proposals will take place between November 2024 and January 2025, with communities asked to have their say on how these savings can be made.

Cllr Eamonn O’Brien, leader of the council, said: “In spite of our budget challenges, we have been able to invest in the future prosperity of our borough – the major regeneration projects taking place in Radcliffe and planned for Bury and Prestwich are testament to that. This is our home, and we all want to ensure that our borough thrives for generations to come.

“The immediate challenge is getting the money we need to run the essential day-to-day services that people rely on.

“We will do everything to can to keep those services going, but this will involve some very tough decisions, and we have to set a legal budget next March.

“I urge everyone to take part in the budget consultation when it begins next month.”

ENDS

Press release issued: 29 October 2024.