Manchester council faces a £5.5m black hole in its finances, with the city under major pressure from spending on adult social care, housing, and education, health and care plans.
The figure was published in the council’s latest update on Wednesday (November 11) over its revenue budget, the money used to fund essential services.
Adult social care overspend
Adult social care funding is under huge strain, with the council reporting an overspend of £9.4m, partially offset by underspending in other departments.
The council said in its report: “The overspend relates to sustained increases in demand and rising complexity of care packages, particularly in supported accommodation.
“Workforce pressures, including temporary agency usage to cover vacancies, sickness and leave, further contribute.”
Housing and schools funding concerns
There are also major concerns about Manchester council’s housing revenue account, which covers repairs and maintenance on housing. According to the budget report, the council needs to use £22m of reserves to balance the account, £7.4m above what was previously approved. The council said in its report: “The forecast position remains a significant concern.”
Another worry surrounds the dedicated schools grant, used to fund individual school budgets and provision for pupils with needs including those with education health and care plans (EHCPs). There is an overspend of £44m in this department, but the council is expected to receive a deficit support grant from the government in November to help cover most of the cost.
Council leaders respond
Council leader Garry Bridges said: “We know that there are pressures, particularly on children's and adult services that need to be worked through.”
Speaking about the dedicated schools grant, a council officer said the way the system is set up is ‘just not sustainable’. They added: “We have the 90 per cent [government] repayment, we've got a plan and the DfE [Department for Education] said our plan was exemplary, which is really positive.”
Councillor Sian Astley, leader of Reform UK in Manchester, said: “On the housing reserves account, It seems to me, that is completely unsustainable as it is. I just wondered, can we actually turn that around?”
Councillor Gavin White, who leads on housing issues in Manchester, said: “Council housing came in-house from Northwards in 2021, and we did inherit some challenges with that. Since then, there’s been a lot of work to deal with damp and mould, fire safety issues, which are integral and statutory issues that we have to deal with.
“Ensuring we get the most from our council housing stock is really important in terms of rental income and prioritising repairs. One of the big issues and challenges with the current housing stock is the repairs contract. We’re looking to bring that in-house from April next year and we believe that will really help get us on a sustainable footing.”
