Council moves to close budget gap amid rising pressures

Tameside Council has announced a series of decisive measures aimed at ensuring it delivers a balanced budget by the end of the financial year, as rising demand and increasing costs continue to place pressure on local authorities across the country.

TMBC operates with an annual budget of £681 million, more than half of which, £339 million, is dedicated to adults’ and children’s social care. This year, a combination of inflation, higher service demand and specific financial pressures has contributed to a forecast overspend of £17 million.

Work to reduce that gap is already well underway. The Council has implemented £3.45 million in savings and is finalising a further £6.5 million, bringing the remaining forecast overspend down to around £7 million, just over 1% of the total budget. While Tameside holds financial reserves, many of these are earmarked for specific purposes, and the authority is keen to avoid drawing on its general reserves unless absolutely necessary.

To help stabilise its position, the Council is introducing several measures across its services, including: targeted expenditure controls focused on reducing non-essential spending, strengthened financial monitoring to identify risks early and manage pressures proactively, service-led recovery plans designed to address overspends and boost cost-effectiveness, partnership work with stakeholders to explore collaborative ways of delivering services and continued lobbying for fairer national funding, reflecting increasing local demand and complexity.

Councillor Hugh Roderick, Executive Member for Finance and Resources, said the Council is determined to stabilise its finances and reshape how services are delivered.

“It has been a difficult decade for local government financially, and we know how much that’s impacted our communities,” he said. “We’re determined to turn things around and our focus is on achieving financial stability and delivering transformative change to how the Council works so we can deliver better services for our residents.

“This isn’t just about balancing the books; it’s about reshaping how we work to build a stronger, more sustainable future. There will be tough decisions ahead, but by acting now, we can set the council on the right path for years to come.”

The Council’s funding comes from a mix of sources: £275 million in government grants, £124 million from Council Tax, £119 million from Business Rates, £48 million from fees and charges, and £115 million from other income.

Its main areas of spending include £180 million on Adults Services, £159 million on Children and Families, £91 million on schools, £40 million on housing benefit, and £101 million on Housing, Environment and Estates. Other allocations include £4 million for Strategic Growth, £34 million in levies such as waste disposal, and £19 million for Population Health.