Manchester town hall faces a £46m budget gap. Council leader Bev Craig says 'it is becoming increasingly impossible to make ends meet'
The government must put 'urgent measures' in place to save Manchester council from falling off a cliff edge as it faces an ever-increasing gap in its budget, the city's council leader says. Council leader Bev Craig has written to Chancellor Jeremy Hunt ahead of the autumn statement later this month with a plea to protect vital services by providing 'sufficient, sustainable and strategic' funding for local government.
Even with a council tax increase of 5 per cent in April, additional savings of £2.5m - on top of the £25m of savings already planned - and nearly £17m of reserves used, a £1.6m gap remains in the next financial year alone. The council is now looking at increasing prices in bereavement services which includes burials, cremation and memorials as well as raising an extra £200,000 from advertising income.
It comes as councils across the country face a £4bn shortfall in their finances by March 2025, according to the Local Government Association, with some local authorities such as Birmingham effectively declaring themselves bankrupt. In September, town hall bosses said that Manchester council will be able to balance the budget despite missing some savings targets so far this year.
In the letter, Coun Craig told that Manchester council has had to make £443m of savings since 2010, £70m a year more than average. She wrote: "We are working hard to build a fairer city where everyone can share in success but in the face of significant pressures on our budget, on top of more than a decade of funding cuts since 2010, it is becoming increasingly impossible to make ends meet.
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