Manchester council will have to make £96m of cuts over the next three years, according to the latest forecasts which include a 3 pc council tax hike in April. The local authority is looking for £28m of savings in the next financial year alone, assuming its portion of the council tax bill will increase by 2.99 pc.
The biggest budget cuts over the next three years would be to social care. But town hall bosses are also considering scrapping public fireworks displays, reducing Manchester Art Gallery's opening hours and raising car parking fees.
It comes as councils await the government's autumn statement in which the new chancellor Jeremy Hunt is expected to announce cuts to public spending. Meanwhile, councils like Manchester's are preparing their own annual budgets – but council leader Bev Craig said this has been 'the most unpredictable year'.
READ MORE: Bonfire night fireworks could be cancelled forever as major Manchester events under threat
Speaking at a scrutiny meeting on Tuesday (November 8), she said: "I can say hand on heart that nobody in local government quite knows what is going on."
Manchester council has had to make £428m of savings due to government funding cuts, rising inflation and a growing population over the last 12 years. Among the factors contributing to the latest budget gap, inflation - including rising energy prices - is forecast to cost £42m more than had been expected over the next two years, while lingering Covid impacts is still affecting income.
The forecast budget position is based on a general council tax increase of 1.99 pc and a further 1 pc increase which would be ringfenced for adult social care. But the adult social care directorate will still be expected to find £10m of savings over the next three years with some services set to be 'redesigned'.
It is hoped the children and education services will save £10.4m by reducing demand from families in crisis, building on the council's early prevention work. There are no reductions to homelessness services planned, but this budget is expected to fall by £4.4m as the use of temporary accommodation is reduced.
The opening hours of Manchester Art Gallery are also being reviewed with the options including closing for an additional day or opening later in the morning. Bonfire night events held at eight parks across the city could be cancelled forever while the New Years Eve fireworks display and Christmas lights switch-on event would no longer be funded by the council, according to the proposals.
The council is also considering introducing charges for replacing recycling bins and increasing other fees, including pay and display parking at Heaton Park. A 10 pc increase on all bereavement services has also been suggested alongside an increase in registrar fees, raising almost £1m in two years.
A temporary reduction in roadside gully cleaning has also been proposed. Manchester council is 'concerned' about the cost of living affecting residents, so plans to invest an extra £3.5m in targeted anti-poverty measures next year.
The council says it is still committed to creating 1,000 affordable homes a year, tackling homelessness and promoting a healthier and happier city, all while leading the drive towards Manchester being carbon neutral by 2038. The town hall says it is also 'focused on getting the basics right' – from emptying bins to maintaining parks, libraries, leisure facilities and roads.
Labour councillor Rabnawaz Akbar, who is the executive member for finance and resources in Manchester, said some councils are in even worse positions. He said: "We and others have called on the government to give councils extra funding to recognise the difficult economic climate. It does not look like this will be forthcoming.
"While we are having to make significant savings we are doing all we can to achieve this through planned efficiencies and maximising income rather than service reductions. We will also continue to invest in the future of the city and its people."
The council will not know its exact funding position until after its financial settlement from government has been received, expected in late December. A public consultation on proposed council tax increases and savings identified by officers opened on Monday, November 7 and will run until January 7, 2023.
The results, and comments from scrutiny committees, will be factored into the proposed budget put forward by the council’s executive in February next year. The final budget will be agreed on March 3, 2023.
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