Protecting people and services – and building a sustainable future

Council leaders are preparing to set next year’s budget against a backdrop of ever-increasing demand for services and rising costs.

They warn that the council is facing significant challenges, but are determined to protect vital services, protect the most vulnerable residents, and build a sustainable future for the borough.

Rising costs and increasing demand has been putting significant pressures on local government budgets including Bury for many years now.

Around 70% of the council’s budget is being spent on social care for adults and children protecting our most vulnerable residents. As an example: in the last 12 months there has been an increase of almost 9% in the number of looked after children requiring residential care, along with an 11% increase in the average cost of those placements.

A significant budget gap

This rising demand and inflation mean there is a £14m gap between what we spend and what we bring in for the year 2026/7.

The council has identified savings of £9.5m to reduce the funding gap in 2026/27, and the latest proposals will enable the council to set a stable and sustainable budget.

Although the amount of savings identified has increased since December (up from £8.5m) there is still, however, a £3.9m gap between income and costs next year that requires the use of council reserves.

However, this is not a long-term solution. Without further action, the gap between income and expenditure could rise to £21 million by 2028/29, and reserves would be depleted.

Focused on long-term transformation, not short-term cuts

To address this, the council has been delivering a major transformation programme to reduce its costs and improve financial sustainability.

Bury, alongside many other councils, has also been pressing successive governments for fairer funding.

Recent national changes to the funding formula have provided a small improvement of around £5 million, which is welcome but still far outweighed by rising demand and costs.

Residents were asked for their views on the budget strategy through a public consultation held in December and January and their feedback has helped shape the proposals, including concerns about council tax increases and the use of digital solutions.

Members of the cabinet will (next Wednesday, 11 Feb) approve a range of proposals to agree savings of more than £9m in 2026/27.

Councillor Sean Thorpe, cabinet member for finance, said: “Like councils across the land, we face increasing costs and inflation and rising demand, particularly for services for the most vulnerable.

“But we are determined to do everything we can to protect those who need our services the most, and without having to take the drastic measures proposed by some other councils. Many of the proposals contained in the budget will generate savings but crucially will also result in more positive outcomes for residents.

“And we will continue to invest in the regeneration of our towns, grow our local economy, and build a prosperous, positive Bury which will benefit generations to come.”

Cllr Thorpe welcomed changes to the funding system, which give Bury a three-year settlement and an increase in its spending power, following many years of austerity.

“This means we can plan and invest more efficiently, but the money is not keeping up with the number of people who need our help, or the complexity of the support they need, when you factor in the sharp rise in demand for services, inflation, and the legal duties we must meet.

“This is why we are taking responsible steps to close the gap for 2026/27, including careful use of reserves, continued transformation, and investing in prevention. Every pound we can save will help our residents and enable us to invest in the future.

“Our priority remains protecting essential services, improving outcomes, and securing long-term sustainability for every town and community across Bury as part of our LET’S Community Strategy.

“The council held a public consultation exercise about the budget over December and January. We hear the concerns about raising taxes and using digital solutions and have tried to address this through a balance of other options and by making representations into government.”

Cllr Thorpe added: “Despite the financial challenges we face in meeting day-to-day needs, the results of our long-term investment are becoming clear for all to see. We have vibrant investment in regeneration taking place in Bury, Radcliffe and Prestwich, and plans for other parts of our borough. And on our border, the huge Atom Valley development promises to create thousands of jobs for local people.

“Times are tough, but there are many reasons to be optimistic too. By working together, with our residents and our many partners, we can all bring about the Bury we all want and hope for.”

The budget proposals are based on the Council Tax being increased by 4.99%, of which 2% will be ring-fenced for social care.

Following cabinet’s recommendation, the 2026/27 budget will be set by the full council on Wednesday 25 February.

ENDS

Press release issued: 4 February 2026.