Leaders at Bury Council say they are taking “responsible steps” to close a growing funding shortfall, warning that soaring demand for social care and inflationary pressures have left a £14 million hole in next year’s budget.
At least 70% of council spending is now consumed by adult and children’s social care, a situation described as unsustainable without long-term reform or additional government support.
Proposals to reduce the shortfall in 2026/27 include £9.5 million of planned savings and a 4.99% increase in Council Tax, of which two percentage points will be reserved for social care. However, even with these measures, the council will need to dip into its reserves to cover a remaining £3.9 million deficit.
Councillor Sean Thorpe, cabinet member for finance, said the council was committed to protecting frontline services and supporting the most vulnerable residents, while avoiding the more drastic cuts seen in other parts of the country.
“Like councils across the land, we face increasing costs and rising demand, particularly in services for the most vulnerable,” he said. “But we are determined not to resort to drastic measures and instead continue our investment in prevention and transformation.”
He said feedback from residents, who took part in a budget consultation over December and January, had influenced the final proposals. Respondents raised concerns about Council Tax rises and the shift towards digital services.
Since December, planned savings have increased from £8.5 million to £9.5 million. But the remaining gap will be bridged by using council reserves, a method Thorpe admitted was not sustainable long-term. Without new revenue or further cost reductions, the annual budget gap could rise to £21 million by 2028/29.
A government funding settlement announced earlier this year is expected to increase Bury’s spending power by approximately £5 million. While welcomed by the council, Thorpe said it “still falls far short” of the cost and demand pressures currently faced.
In addition to budget measures, Bury Council continues to lobby for fairer funding and plans to press ahead with regeneration projects across Bury, Radcliffe and Prestwich. Officials also pointed to opportunities arising from the Atom Valley development, which spans the Bury-Rochdale border and is projected to generate 20,000 jobs and a £570 million boost to the regional economy.
The final 2026/27 budget will be approved at a full council meeting on 25 February.
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