Manchester council bosses believe they'll still balance the budget
Manchester council is facing the prospect of its budget gap growing to £108m over the next three years. But the town hall says its finances are not as bad as Birmingham council's which effectively declared bankruptcy earlier this week.
The savings plan for this year has not been successful so far. In July, the council revealed it was expecting to overspend on its budget by nearly £9m.The town hall is now projecting an overspend of £9.6m in this financial year. Almost all of this projected overspend, which is calculated based on spending and income from April to the end of July, is related to rising social care costs.
It comes after town hall bosses said a drop in demand for care homes, which was expected to continue after the pandemic, would save the council millions. But despite 'strong progress' in reducing demand, the report in July said it is 'unlikely' that the planned savings of £5.5m would be delivered in 2023/24.
Demand continues to increase for long-term care arrangements in adult social care, accounting for another £3.7m. The remaining forecast overspend of around £0.9m consists of reduced car parking revenue relative to targets and extra costs for the local elections in May due to the introduction of voter ID rules nationally – but these are offset by underspends in other departments.
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