Agenda item

Report attached to be presented by Councillor S. Thorpe Cabinet member for Finance and Transformation

A report was submitted, presented by the Councillor Thorpe Cabinet member for Finance and Transformation, which had been circulated prior to the meeting.

Councillor Thorpe provided overview of the six-monthly report on the budget. The report highlighted a proposed reduction of £9.4 million, which would bring the budget gap down to £20.3 million over three years. The Council member emphasized that there was still work to be done to balance the budget by February. The report also compared the state of Bury's finances to other councils, noting that 80% of places in the UK are better funded than Bury.

Councillor Moss thanked the Council member for the report. Councillor Moss then raised two questions: Referring to page 60, paragraph 31, Councillor Moss asked about the possibility of a longer-term settlement for 2026-2027 and the introduction of the new fair funding formula (NFF). He noted that Bury seemed to be at the bottom of the funding scale and asked if the new formula might help Bury.

Cabinet member explained that it was difficult to predict with absolute accuracy what the new funding formula changes might mean for Bury. There was a perception that previous government alignments favoured certain councils politically. The new funding formula would consider factors like deprivation and the council's ability to generate income from other sources, such as council tax bandings. He expressed hope that the government would listen to Bury's concerns, but there was no certainty about the outcome.

Councillor Moss referred to paragraphs 66 and 69 on page 73, which highlighted the budget situation for 2025-2026. He noted that while the budget and reserves looked reasonably okay for now, more drastic action might be required in the future. He asked how realistic it was to make further savings.

The Council member acknowledged that while the budget might look reasonably okay, it was without any additional financial shocks. The Council was working on transforming services to be more streamlined and cost-effective. Efforts included reducing spending on areas like children's residential homes. The Council member emphasized the importance of not relying solely on a better funding formula or more money from local sources. The Council was also looking at potential income from assets like Manchester Airport and contributions to the Greater Manchester Pension Fund. The Council member stressed the need to leave no stone unturned in addressing the budget gap.

A question was asked about the management actions listed on page 67, which aimed to save £8.8 million. He inquired about the progress of these actions and whether they were on track.

The Council member explained that management actions involved savings proposals that did not negatively impact service delivery and were within the officers' remit to implement. Monthly reports tracked progress against milestones, and the Council was on track with these management actions.

There was a discussion about the impact of national insurance increases and the real living wage on the budget. Councillor Thorpe advised that the real living wage had been factored into the forecast position. The budget announcement included additional funding, but also increased costs due to national insurance. The Council was waiting for the settlement details to understand the full impact. The Council member highlighted the potential additional costs for social care providers and suppliers, which could be significant.

The Chair summarized the discussions, noting that the Council was awaiting the settlement details and would revisit the budget in February. The Chair thanked all attendees for their participation and contributions

It was Agreed:

·         The report be noted