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Greater Manchester's rumoured winners and losers in £69bn deal

Greater Manchester's rumoured winners and losers in £69bn deal

Yahoo2 days ago
Greater Manchester's rumoured winners and losers in the government's next financial deal have been named.
Manchester council could be a big winner under the government's new rules for how local authority funding is calculated, a report seen by the Local Democracy Reporting Service says.
However, the SIGOMA study says Wigan, Rochdale, and Trafford councils are all set to receive a smaller increase in 'core spending power' than the England average.
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Core spending power measures the amount of cash town halls can spend on day-to-day services like road maintenance, adult social care, and bin collections through government grants, business rates, and council tax.
The research suggests Manchester's core spending power will rise by 25.64pc, double the projected England average of 12.8pc.
But Rochdale could see a lower-than-average increase of 10.62pc, Wigan is set to receive a 9.98pc rise, and Trafford is in line for 7.94pc.
Report author SIGOMA is a pressure group comprising urban area councils in the north, midlands, and south coast. It calculated the figures based on information released by the government under its 'Fair Funding 2.0 proposals', which are set to shake-up how local authorities are funded
The government says no final decisions have been made on the proposals and councils' cash settlements this year, with official funding packages usually confirmed in December.
However, a Ministry of Housing, Communities and Local Government spokesperson said reform of the system is due: 'No final decisions have been made and these figures should be treated with caution.
'We will consult again through the provisional Local Government Finance Settlement later this year.
'We have already made over £69bn available this year to boost council finances, including over £3.5bn for Greater Manchester, and we will go further to reform the funding system to make it fit for the future.'
Wigan, Trafford, and Rochdale councils told the LDRS they would 'make representations' to the government's 'fair funding 2.0' consultation, which closed last Friday (August 15).
Trafford council leader Tom Ross said: 'We have made no secret about the significant ongoing financial challenges Trafford has faced after suffering cuts to our funding of almost £300m over the last 15 years.
'These historic funding cuts, rising cost pressures and an increase in the need for services especially among children's and adult social care, compounded by several years of council tax freezes, have meant it is becoming harder to deliver what our residents and businesses need while balancing the books.
'We will be providing a detailed response to the consultation and will continue to work closely with the government and our local MPs to secure a fair deal for Trafford and our residents.'
A Wigan council spokesperson said: 'We welcome the review of funding for local authorities and will be making representations as part of the ongoing consultation process, which we hope will result in fair distribution of funds based on the needs of communities – ensuring local authorities can continue to deliver vital services and support to those who need us most.
'Wigan borough faces many ongoing challenges – including high levels of deprivation and health inequalities within our neighbourhoods – which, together with our partners, we are committed to addressing in line with our Progress with Unity missions.'
And a Rochdale council spokesperson added: 'No final decisions around our settlement for the next financial year have been made and, as always, we will make any representations through the appropriate channels. We will be responding to the Fair Funding Consultation this week, and providing feedback on the proposed funding allocation methodology.'
Manchester council and the Greater Manchester Combined Authority declined to comment.
SIGOMA's calculations:
Area
Increase in core spending power
Manchester
25.64%
Bolton
19.25%
Bury
18.88%
Oldham
18.88%
Salford
14.99%
Stockport
13.48%
Tameside
13.31%
England average
12.80%
Rochdale
10.62%
Wigan
9.98%
Trafford
7.94%
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