Tameside Council reduces forecast overspend but financial pressures remain

Tameside Council says it is taking “clear and responsible action” to improve its financial position this year, after reducing a previously forecast overspend by almost half.

In September, the council projected an overspend of £17 million for the current financial year. That figure has now been reduced to £9.2 million, following a combination of contingency funding and savings already put in place.

According to the council, around £6 million has been drawn from money that was set aside to manage inflationary pressures, alongside nearly £2 million in savings that have already been actioned across services. Further work is ongoing to bring the overspend down further before the end of the financial year.

The authority says all departments are involved in recovery efforts, with measures including tighter controls on non-essential spending and service-led plans aimed at addressing areas of overspend. These plans are intended to improve value for money and increase cost effectiveness while maintaining essential services.

However, the council has acknowledged that it continues to face significant financial challenges, similar to those experienced by local authorities across the country. Rising demand for services, increasing operational costs and particular pressures within Adult and Children’s Social Care are cited as key drivers of the ongoing budget difficulties.

Despite these pressures, the council says the reduction in the forecast overspend demonstrates progress and reflects its intention to limit, and ideally avoid, further reliance on reserves. Local authority reserves are designed to manage short-term financial risks, but councils have been warned nationally that using them to plug ongoing budget gaps is not sustainable in the long term.

Councillor Hugh Roderick, Tameside Council’s Executive Member for Finance and Resources, said the authority was focused on stabilising its finances while protecting core services.

“We’re taking clear and responsible action to address the budget challenge to support our future financial position and avoid unsustainable use of reserves,” he said.

“We are putting the Council on a more secure footing for future years, and we’re committed to delivering essential services and supporting our residents and communities through every challenge.”

Tameside Council’s annual budget supports a wide range of services, including Adult and Children’s Social Care, support for vulnerable residents, schools, waste collection and the maintenance of parks and green spaces. These services account for a significant proportion of overall spending and are among the areas most affected by rising costs and increasing demand.

Work to further reduce the overspend is expected to continue over the coming months, with the council aiming to strengthen its financial resilience while continuing to meet the needs of local residents.