Rochdale council is facing a projected budget deficit of £15.227m by 2029/30, according to the latest forecast presented to town hall bosses. The deficit is anticipated to be driven by wage increases, inflation, and cost pressures in adult social care and children’s services.
Budget Forecast Details
Over the next two years, the forecast budget gap stands at £0.368m in 2027/28 and £5.674m in 2028/29. By 2029/30, without action, the shortfall rises to £15.227m.
Causes of the Deficit
In adult social care, the ‘real living wage’ continues to increase above expected levels, putting further pressure on budgets. An additional allocation of £1.5m per year has been built into future costs. Overspend from children’s services was higher than originally forecast, a common trend in recent years. Additional inflation on wages for council staff is also adding strain, according to finance boss Sam Smith.
Government Funding Uncertainty
The finance team does not know how much the government funding settlement will be each year, fuelling uncertainty. Budget papers note: “There is a risk that the finance settlement for 2029/30 will not include a continuation of the Recovery Grant, which was only confirmed up to 2028/29. The Recovery Grant is around £15m.”
Council Response and Savings
At the meeting on July 28, Coun Daniel Meredith said: “A lot of work is ongoing in terms of creating new care homes and children’s homes. I feel there is a lot of work going on to sort this problem (in children and adult services).“We are going in the right direction.”
According to budget papers, the council has made savings of £204.5m from its revenue budget since 2010/11. The gaps for the upcoming years mean savings of £6m will be needed by 2028/29, rising to £15m by 2029/30.
