Council sets ‘toughest budget yet’ for 2024/25

Members of Bury Council have formally set the budget for upcoming financial year 2024/25.

Leaders describe it as the most difficult they have had to set, and have called for an urgent review of government funding before the authority’s financial position gets ever more precarious.

To balance the budget, the council is using £15 million from reserves and £7.5 million in savings, efficiencies and income generation.

Councillor Eamonn O’Brien, leader of the council, said: “The Government has increased our spending power, but most of that must come from increases in the Council Tax.

“Meanwhile, we are in the bottom 20% of councils when it comes to government funding.

“We’ve had inflation of up to 11%, and a huge rise in demand for services, particularly adult social care and for children with special needs. These are crucial services that we must provide, but they are also among the most expensive – social care accounts for two-thirds of the Council Tax.

“Sooner or later, we will be reduced to providing only the services that we have to by law.”

At Wednesday’s meeting, the council voted to increase the Council Tax by 2.99% for general council services, plus a 2% levy to be spent exclusively on social care. Around 84% of people’s total Council Tax bill goes to the council, with the remainder going to the Greater Manchester Mayoral, police and fire services.

More than half of the 85,000 houses in Bury fall into the bottom two bands (A and B), so the increase for them equates to £1.40 a week for a Band A house and £1.63 a week for a Band B house.

Council house rents will increase by the Government’s cap of 7.7%. Money raised from this can only be spent on social housing. It is estimated that around 78% of tenants are in receipt of housing related benefit.

Cllr O’Brien added: “Using reserves buys us some time, but it doesn’t change the structural position, which is that demand is outstripping our ability to generate income. I am very concerned about public services in Bury, which are facing massive challenges. This budget was difficult to deliver, and our position is becoming increasingly untenable.

“We must have fair funding now. I appeal to the people of Bury to join our campaign and sign our Let’s Fix It Together petition.”

To sign the petition, go to https://www.bury.gov.uk/council-and-democracy/budget-campaign-petition

ENDS

Press release issued: 23 February 2024.