Budget update – closing the gap and protecting services

Bury Council is taking all necessary measures to set a balanced budget for 2025/26 which also protects public services.

The council had been forecasting a financial gap of £19.5m for the next financial year, but this has been reduced to £5.8m.

This has been through a better than expected funding settlement from the Government, and one-off grants, alongside savings proposals including smarter commissioning and contract management, reducing the cost of statutory care provision, increasing income through fees and charges, and staffing efficiencies. It is proposing to use reserves to plug the remaining gap.

Councillor Eamonn O’Brien, leader of the council, said: “Taken together, our financial position is less severe than we had anticipated.

“However, we are not out of the woods yet, and we face many challenges this year, and in the years to come.

“Like councils across England, we are having to cope with huge rises in demand for services - particularly in social care, where the majority of our money already goes.

“Bury is still well below the average funding levels given to other councils, a fundamental issue which affects us every year. We will continue to fight for a new way of funding local government and secure a better deal for Bury.”

The council is due to set next year’s budget when it meets on Wednesday 19 February. Before then, it will be considered by the council’s cabinet and by the overview and scrutiny committee (the report can be read here: https://councildecisions.bury.gov.uk/ieListDocuments.aspx?CId=138&MId=3722).

The budget figures forecast a rise in the Council Tax of 2.99% for general council services, plus 2% reserved specifically for adult social care.

ENDS

Press release issued: 31 January 2025.