Manchester City Council has today, Friday 3 March 2021 agreed its budget for 2021/22.
The Council has faced a challenging budget position with both its costs and its income being severely hit by the impacts on the Covid-19 pandemic on top of pre-existing budget pressures caused by a growing population and inflation.
While there has been some additional funding from Government for Covid costs, it has not been enough to bridge this budget gap.
As a result, annual spending on services has had to be reduced by £40.7m in 2021/11 (with budget reductions of £11.6m for adult services, £12.4m for children’s services, £6.7m for neighbourhoods, £5.7m for the corporate core, £2.4m for homelessness and £2m for growth and development.)
These cuts would have had to be bigger without an increase in Council Tax.
The element of Council Tax which is set by the Council (which does not include the general Greater Manchester Mayoral precept and Greater Manchester Mayoral police precept) will go up by 1.99 per cent plus an additional 3 per cent social care precept to help meet adult social care costs.
Together this represents a 4.99 per cent increase and will raise around £8.5m, reducing the need for further cuts and supporting adult social care for those in need.
Government funding for adult social care is insufficient to meet growing demands. The estimated cost of the pandemic to adult social services next year is £13m. Even the 3 per cent adult social care precept will only raise around £5.1m of this.
Sir Richard Leese, Leader of Manchester City Council, said: “This year’s budget has been a difficult one, not least because we have only been given funding for one year and no certainty beyond that – except the certainty that without sustainable funding which recognises the role of local government we will face further tough choices in the years ahead.
“But we will continue to strive to deliver the best services we can and invest in the future of this city and its recovery from the ongoing impacts of the Covid-19 pandemic.”