Trafford Council is to ask the government for additional financial support to help it balance its books.
A report published by finance chiefs says the money is needed to help the borough meet increasing need for its services and follows a review of funding for councils from central government which saw the council’s financial position put under further strain.
The report also stressed the local authority was not about to go bankrupt and that services will continue to be delivered to a high standard, and there are no plans for compulsory redundancies.
A draft budget 2026/27 report, submitted to the Council's Executive, explains how finance officers identified ways to reduce an initial three-year budget gap of £50m down to just £10m. However, the Government's recent Fair Funding Review of local council finances means the funding gap will now increase by £24m.
The report proposes a formal application to the government for what is known as Exceptional Financial Support (EFS) of around £20.6m in order to achieve a balanced budget. This a loan repayable to the government over 20 years.
Council leader Tom Ross, said:
“In recent times, our strong financial management has reduced costs, successfully secured additional funding and balanced the books.
“We have always been honest and open about the significant ongoing financial challenges we have faced for many years and we have met with the government on several occasions to explain in more detail the issues we have faced including addressing budget gaps of £330m.
“However historic funding deficits, increasing cost pressures and a rising need for services especially among children’s and adult social care, compounded by several years of council tax freezes have put an increasing strain on our finances. Added to this is the new funding formula for local government which has hit us hard but we remain in dialogue with the government.
“That is why we made the responsible decision to ask the government for financial assistance, known as Exceptional Financial Support (EFS) while at the same time lobbying for fairer funding for Trafford to help us address our ongoing structural financial deficit.”
Trafford is continuing to experience significant growth in demand for children’s social care and Special Educational Needs. There also increasing financial pressures on managing temporary accommodation for homeless people, with housing options significantly more expensive for Trafford compared to Greater Manchester. A third of Council spending goes on Adult Services, with a quarter on children’s services
The report will be discussed at a meeting of the Council’s Executive on 14 January.