The Council needs to balance its books and is looking at making savings based on extra income, staff efficiency and service transformation. Your views will help it decide what savings to make and assist in setting council tax levels for next year.

Manchester City Council has launched a public consultation on £41.5million of savings options that would be introduced over the next three years (2025/26 to 2027/28) to address the Council’s challenging financial position.

Councillors will decide which options to proceed with in the new year, once the Council has received its funding settlement from the Government and its exact financial position for next year is known. The consultation also asks residents about council tax levels and their priorities for the city.

Measures in the new Government’s recent Autumn Statement may have slightly improved the Council’s position for 2025/26 – and they offer grounds for future optimism – but the exact funding will not be known until the end of the year. While austerity is over, the Council is still dealing with its impacts and must make significant savings.

As things stand, the projected budget shortfall for 2025/26 is £29million, increasing to £77million by 2027/28, unless the gap can be closed through savings or further funding.

The Council is confident it will be able to put forward a balanced budget for 2025/26 that protects frontline services people rely on – including social care, libraries, leisure centres and parks – while continuing to deliver on key priorities such as tackling poverty, supporting residents through the cost-of-living crisis, and building affordable homes.

Savings options
All this will only be possible with extensive savings on top of those previously agreed, and the prudent use of reserves.

Of the £41.5million of savings options identified, the majority – more than £33million – are through increased income generation (£20.3million) or efficiencies (£13.1million); only £2.3million of the options relate to service reductions. The remaining £5.8million of options relate to transformation, where savings will be generated through win-win service changes that promise to reduce the cost of services while improving the outcomes for service users.

Council tax
The consultation is also asking Manchester people’s views on a council tax increase of up to 4.99%. 2% of this is earmarked to protect adult social care services, and a further 2.99% increase would be invested in services for the most vulnerable and help deliver on what people have told the Council matters most to them.

Without the additional funding this increase would raise, the Council would need to make £11.4million more cuts to services, so as the Government’s funding settlement calculations assume this level of increase, the Council is proposing it.

Manchester people on the lowest incomes receive help through the Council Tax Support scheme, which provides a reduction of up to 85% in bills for working people and up to 100% for pensioners.

Proposed change to care-at-home costs
The consultation also asks for views on proposed changes to how the Council charges for the support it offers people to stay independent in their own home – things like bathing, dressing, managing medication, household tasks, and getting out and about in the community.

Proposals to bring Manchester’s charges in line with those of other councils would see people with savings and assets over £23,250 paying the full cost of their social care package (NHS funded support is unchanged), plus a potential nominal arrangement fee and yearly fee. Savings and assets do not include the home a person lives in, or income such as a pension or benefits; they mean things like savings, stocks and shares, other property and investments.                              

Balancing act
Councillor Rabnawaz Akbar, Executive Member for Finance, said: “Setting our budget is a balancing act. On the one hand we are determined to sustain essential services, give a helping hand to those who need it most and invest in the city’s future. On the other hand, we need to make savings and generate more income to manage the considerable financial pressures we, in common with all councils, are under.

“We would encourage Manchester people to take part in this consultation to help us get the balance right. Refreshing our understanding of their priorities will help us get this balance right.”

Public consultation on the savings options and council tax levels will run until 12 January 2025 at www.manchester.gov.uk/budget

The final budget will be agreed on 28 February 2025.