The Leader of Trafford Council has written to the government urging for a fair deal for the local authority as it faces the need to find savings worth millions of pounds again to balance its books.
In the letter, Cllr Tom Ross calls for Michael Gove MP, the Secretary of State at the Department for Levelling Up, Housing and Communities to bring forward a Fairer Funding review and also provide immediate relief to the borough.
Cllr Ross says since 2010, the council has addressed budget gaps of £288m while its funding has fallen by 60% in real terms.
Increasing need for council services, especially among the more vulnerable in society coupled with high inflation and energy costs mean another challenging financial year ahead. He says the Council can’t keep going on indefinitely having to bridge a massive budget gap year after year.
In his letter, Cllr Ross states: “We receive £11m a year less than similar authorities on average, a figure that is miniscule in terms of central government spending but would make a world of difference to the residents of Trafford.”
After addressing budget gaps of £288m since 2010, the Council is having to deal with a further £20m budget gap for the next financial year – and then find another £35m in savings by 2026. The Council has outlined £13.6m in savings for the next year but the cumulative impact of making savings year on year is taking its toll.
Cllr Ross added: “We have made cuts, we have made efficiencies, we have developed extra funding streams – we have done all we can while protecting our front line services to support our most vulnerable residents.
“All we are asking for is some fairness.”
The letter is as follows:
Dear Secretary of State,
We pride ourselves as a highly efficient Council, transforming and modernising ourselves to deliver more with less. We have fabulous schools with amazing teachers and hard-working pupils. When families, children and adults need our help, we are there for them, giving them the support they need. We have a plethora of Green Flag parks and are leading the borough towards carbon neutrality. We support our businesses, with an award-winning high street and plans to transform our town centres. We are working hard towards our vision that Trafford is a place where all our residents, businesses and communities can prosper.
But we are suffering a death by a thousand cuts. Or by more than £300m of cuts to be precise. Since 2010, we have addressed budget gaps of £288m and our funding has fallen by 60% in real terms. We have done this by reducing our spending in certain areas and creating an investment strategy to bring in extra revenue. We have modernised our services and improved efficiency, in some cases reducing staffing levels, while still meeting the needs of our borough and we have made prudent use of our reserves.
But we can’t continue like this. For the next financial year, we are having to deal with a further £20m budget gap. By 2026, we will need to find another £35m in savings if Government funding is not reformed. We have already reduced the £20m gap by £13.6m but our options for further savings are running short.
At the same time that we are being asked to make savings, the demand for our services has increased exponentially. More children and families are in need or our support, while the rise in our elderly population has put an increased strain on our Adult Social Care Services. We also have a significantly increased cost base due to the ongoing high rate of inflation.
In short, we need fairer funding from central government. A recent piece of work by the Institute of Fiscal Studies identified us as the lowest funded authority comparted to 150 similar authorities. Our funding per head of £747 falls well below similar authorities. Compared to our need, the IFS report identified a funding shortfall of £148 per head of population. That means we receive £11m a year less than similar authorities on average, a figure that is miniscule in terms of central government spending but would make a world of difference to the residents of Trafford.
Therefore, we urge you to bring forward the Fair Funding Review that would help us continue to best serve the vulnerable people in our borough. While this Review takes place, we need a temporary funding solution that would bring immediate relief to our borough. You have the power and responsibility to help us support our residents, businesses and communities. We urge you to make the right decision for Trafford.
Please do not hesitate to contact us should you need any further information.
Yours sincerely,
Councillor Tom Ross
Leader of Trafford Council
Posted on Thursday 14th December 2023