Council leader's urgent plea for funding rise

Bev Craig has written an open letter to the chancellor

The leader of Manchester City Council has written to the government in an "urgent" plea for financial help after finding it “impossible to make ends meet".

In an open letter to the chancellor, Bev Craig explained how rising costs and funding cuts had brought financial issues, as she tried to build a "fairer city".

She said the demand for vital services, particularly long-term care arrangements, was rising faster than funding.

The government said it was continuing to "closely monitor" councils' funding pressures.

Ms Craig said other local authorities had declared bankruptcy, including Birmingham City Council earlier in the year.

"No responsible government can afford to ignore such alarm signals," she said.

The Local Government Association has also warned that England’s councils will face a £3bn budget shortfall by March 2025.

Ms Craig said: “Significant pressures on our budget, on top of more than a decade of funding cuts since 2010, it is becoming increasingly impossible to make ends meet."

'Spending increase'

The letter said there was a "whole raft of pressures" on local government, including in Manchester trying to find an extra £7.2m for adult social care.

The cost of inflation was now £21m annually, compared to £8m pre-pandemic, Ms Craig said.

She said using reserves was now necessary for councils to be able to set budgets and appealed for "urgent measures to ensure our funding is sufficient, sustainable and strategic”.

The Department for Levelling up, Housing and Communities said: “We continue to closely monitor councils’ funding pressures to make sure we understand the costs they are facing."

A spokesman added that the Local Government Finance Settlement for 2023/24 made available up to £59.7bn for local authorities in England.

That was an "increase in core spending power" for Manchester City Council of up to £58.4m. they added.

“We stand ready to speak to any council that has concerns about its ability to manage its finances or faces pressures it has not planned for.”