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Economic Development

Bury Council faces £64m budget shortfall

The issue will be presented to councillors at meeting next week

Bury Town Hall(Image: Copyright Unknown)

One Greater Manchester council is facing a budget shortfall equal to £64m over the next four years.

Bury Council's shortfall is down to the impact of austerity measures and extra pressures cause by Covid-19, the reported.

The issue will be presented to councillors at meeting next week, where they will be informed of a £21m shortfall in the next to years - and a further £43m shortfall in the following two years.

Around half of this gap will be met using the council’s reserves to cover one-off losses of income due to the impact of Covid, but the rest will have to be made up by cuts to council spending on services.

Under current plans, there will still be a gap of £15m after the current cuts being proposed have been factored in.

The leader of Bury Council, Cou Eamonn O’Brien, said: “We have suffered ten years of austerity which have stripped over £100m from our budgets. On top of this, there is ever increasing demand for services – particularly in adults’ and children’s social care, which together make up two-thirds of the council’s annual budget.

“And now there’s the impact of Covid to deal with, which cannot be underestimated and will significantly impact our finances and the local economy for a long time to come. The council has suffered a major loss of income during the crisis, and we will not know what our financial settlement from the Government will be for some weeks to come.”

He added: “Despite this uncertainty, we are in a strong position to meet these challenges. When we last set our budget back in February, we made sure to put money back into our reserves to improve our financial resilience, we had balanced the books over the previous year and had set out an achievable savings plan for the year ahead.