Understand
Bury Council seeks emergency government financial support to address a £9.6m budget deficit
Overview
Bury Council is applying for Exceptional Financial Support (EFS) from the government to tackle a projected £9.6m budget deficit for the upcoming financial year, with a three-year budget gap potentially reaching £35m. Facing rising costs and dwindling reserves, the council must avoid issuing a Section 114 bankruptcy notice and is considering service cuts, green waste charges, staff voluntary redundancies, and potential council tax increases above 4.99% if permitted.
Key points
- Bury Council is seeking emergency financial aid from the government to plug a £9.6m deficit for the coming financial year.
- The council faces a potential three-year budget gap of £35m, which could rise to £17.5m by the end of that period.
- Town halls are legally required to set a balanced budget each year to avoid filing a Section 114 bankruptcy notice.
- Proposed measures to reduce spending include green waste charges, youth service cuts, switching off streetlights overnight, and a voluntary staff redundancy scheme.
- Finance leaders have not ruled out council tax increases of more than 4.99% if allowed by the government.
- Bury is the second Greater Manchester authority to apply for Exceptional Financial Support in recent years, following Trafford Council.