Council sets out financial position and approach to setting next year's budget

In a report to its October Cabinet meeting Bury Council has set a review of its current financial position and the approach to setting a budget for 2027/28. This report should be viewed in the context of a local authority that is continuing to deliver positive outcomes for residents against all its strategic objectives.

Over the last twelve months, improvements in services such as Children’s and Adults’ Social Care have been externally validated. Reducing inequalities and building a thriving economy has been evidenced by successful regeneration schemes in Radcliffe, Bury and Prestwich. Whilst there is still more to do to meet housing need, including providing more affordable homes, robust plans are in place to continue to deliver good growth.

As is the case elsewhere in the country, Bury Council is facing considerable challenge due to rising demand and limited reserves, however we committed to achieving financial sustainability and continuing to provide key statutory services and care to our vulnerable residents.

This Cabinet report marks the start of the Council's budget-setting process for 2027/28, the timings of which have been brought forward to allow for full consultation on the proposals. This reflects the difficult decisions that will need to be taken to close the budget gap for the medium term. It also allows time for staff consultation on workforce changes and for engagement with central government on options for Exceptional Financial Support

The Council has already identified a significant proportion of the savings needed and further work is underway to close the remaining gap through efficiencies, service redesign and new ways of working. Despite this, current forecasts indicate that these measures will not be sufficient on their own to close the Council’s medium-term financial gap. The report sets out an updated forecast of a £5.7m overspend in the current 2026/27 financial year and a projected budget gap of £9.6m in 2027/28 which takes account of new savings proposals. Without these proposals the gap for 2027/28 would be £20.3m.

Councillor Sean Thorpe, Deputy Leader and Cabinet Member for Finance & Corporate Services, said:

"This is not simply a conversation about next year's budget. It is a conversation about the future shape of the council in continuing to deliver for our residents and further improve services. Our sector regulators have recognised our improved performance for children with special educational needs, and in adults and children’s social care. We are determined to set a budget that will allow us to continue along that path.

"Bury is not alone in facing challenges of increased demand, but we have a responsibility to respond to them in a way that protects the services residents rely on and creates a sustainable future for the borough.

"We have made significant savings over many years while continuing to invest in our communities, town centres and infrastructure. We have also focused on tackling the causes of demand through prevention, supporting people to live independently and helping our communities thrive.

"However, the scale of the challenge requires us to continue reshaping the council to reflect the realities facing local government today. That means looking carefully at how services are delivered and how we can focus our efforts where they will have the greatest impact.

"We know these discussions will be challenging. We also know that residents, staff and partners want to understand the choices we face. By starting this process early, we can have an open and meaningful conversation about the future and ensure that all views are heard.

"Our priorities remains clear: protecting support for the borough's most vulnerable residents while creating a financially sustainable council that can continue serving Bury residents and delivering improvements for years to come."

Providing social care services now accounts for 80% of the Council's core budget. Whilst working hard to reduce the demand, the cost of delivering this support has increased over time due to the complexity of care required and the impact of inflationary pressures.

As an example, within Adult Social Care efficiencies of between 5% and 7% have been achieved each year for the last 6 years and the Council now spends £44m a year less than if these efficiencies had not been made. However, this not been sufficient to offset the underlying growth in the cost of care. It is estimated that at a national level an additional £8.3 billion will be required by 2032/33 simply to keep pace with growing demand for adult social care alone, this would be an extra pressure of £28m a year for Bury.

Bury Council is not alone in facing these challenges. The sector has now seen unprecedented numbers of councils unable to balance budgets based on core government allocations. Central government has committed to reviewing the funding of social care and other statutory services such as housing, planning and public protection. These are welcome commitments however the Council is also working hard to demonstrate its own solutions to ensure continued viability, rooted in delivering the LET’s do it! vision for 2030.

The Cabinet Report sets out the approval process to commence discussions with Government about what flexibilities may be available to allow the Council to continue its improvement journey. This Exceptional Financial Support is available to all councils facing financial pressures where the current levels of funding would not be sufficient to meet the cost of demand regardless of how efficiently the council is run. This would not remove the need to make savings but would provide temporary flexibility while longer-term financial recovery plans are delivered such as growing our council tax base and other revenue streams.

The Council will publish its detailed budget proposals in January 2027, including the feedback from consultations. Final decisions on the 2027/28 budget will be taken by Full Council in February 2027.

Note to editors:

Work is ongoing to identify further measures needed to close the remaining budget gap ahead of the council agreeing its final budget in February 2027.

The October report outlines services that will be consulted about:

• Green waste
• School crossing patrols
• Street lighting
• Youth service
• Adult social care payments
• Leisure membership fees

Consultation about these proposals will begin in mid-October with further detailed service review proposals to come later in the January Cabinet report.