Manchester City Council agrees budget for 2023/24

Posted: 03/03/2023

More than 60 per cent of the council’s £736.2 million revenue budget, £441.2 million, will target  those most in need – caring for and supporting adults, children, and people facing homelessness.

Manchester City Council has announced its 2023-24 budget, including its element of Council Tax, and a further 15 per cent is allocated to neighbourhood services such as waste and recycling, maintaining roads and pavements and providing parks, libraries, and leisure centres.

The council’s growth and development plans receive 14 per cent, to be spent on inward investment, attracting jobs, and the building of new housing stock including affordable homes. It also covers ‘behind-the-scenes services’ which enable staff to work for the city. 

The remaining 11 per cent goes on corporate budgets to help fund the city’s public transport, invest in building projects, and contingency funding should additional, unexpected costs arise during the year.

Extra cost of living support 

The budget includes £5.5 million of additional targeted support for the most vulnerable residents and the voluntary, community and social enterprise sector providers who help residents most in need during the cost-of-living crisis.  

There will  be further funding for voluntary and community groups providing community hubs, good neighbours groups and other support across the city.  

New support, in addition to existing welfare provision schemes, will help anyone struggling with outstanding Council Tax debts. This is in addition to the Council Tax support scheme which already given tens of thousands of the lowest paid Manchester people substantial bill reductions.  

Other extra investments 

The budget also includes a further £26.4 million for adult social care to support residents, strengthen the social care sector and to help ease some of the pressures on the NHS by discharging people from hospital appropriately. 

The homelessness service budget receives a £4million increase and £3.3 million goes to children’s services to increase prevention and help with higher placement costs.  

An extra £1.5 million in funding for cleaning and managing the city, and a £0.7 million fund for maintenance and urgent improvements around the city is also included.  

Savings and Council Tax 

Set against this, unfunded budget pressures including inflation and the need to ensure services are in a sustainable position to cope with steep cuts to Government funding expected from 2025/26 onwards mean that £36.2 million of savings are being brought forward over the next three years. £15.3m of those savings will be realised in 2023/24. They involve efficiencies or increased income generation rather than service reductions.  

The Council’s element of Council Tax has increased by 4.99 per cent - a 2.99 per cent general increase plus a 2 per cent precept towards adult social care costs. The Government’s funding settlement calculations effectively assume that local authorities with social care responsibilities will increase Council Tax by this amount, the maximum allowed without the requirement for a local referendum. 

Councillor Bev Craig, Leader of Manchester City Council, said: “The Council provides a wide range of services that are used by everybody in the city, whether their lives are going well or they are finding things a bit more difficult and need some extra support.  

“We are acutely aware of the cost of living crisis which is why we are providing a vital helping hand to those who need it the most while continuing to invest in the services which help the city to thrive and make it a great place to live in.” 

Councillor Rabnawaz Akbar, Executive Member for Finance, said: “Managing our budget remains challenging. We’ve had to make £428m of savings since 2010 to cope with the impact of Government funding cuts and unfunded budget pressures such as inflation and a growing population. 

“It’s a difficult balancing act but we continue to look to the future for the whole city and its people as well as ensuring that support is in place for those who need it right now.”  


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