Stockport Council is calling on the Labour Government to reform the way local government is funded, to prevent councils up and down the country from succumbing to bankruptcy. The call comes as Stockport is reporting a forecasted budget deficit of £8.8 million this financial year, due predominantly to the growing pressures in adult social care and children’s services.
Cllr Jilly Julian, Deputy Leader of Stockport Council and Cabinet Member for Finance and Resources, said: “Work is well underway to resolve the outturn position, with no stone left unturned as we look to maximise controls on spending and find potential savings. The fact of the matter is, however, that funding from government is simply nowhere near enough to meet the rising costs of delivering essential care services for our residents.
“We are grateful that we are in a far more secure position than other local authorities, and we will continue to balance the books and live within our means. Stockport is a council that is well known in the sector for its robust financial management, and one that can make the tough decisions to ensure sustainability and resilience.
“We are consistently disappointed by government’s refusal to be bold and properly reform local government finance. For 17 years councils have been forced to provide more statutory services with less money – there comes a point where there are no more efficiencies to make. There are services that both legally and morally, we must provide, yet the financial position the government is putting us in is simply untenable.”
The Local Government Association’s (LGA) analysis indicates that councils face a £2.3 billion funding gap in 2025/26, which could rise to £3.9 billion in 2026/27. These pressures are driven by escalating costs in children’s and adults social care, with no sign of radical support or reform on the horizon. MHCLG cannot continue to lean on council tax-payers to fund statutory, demand-led services.
Cllr Julian added: “Despite rising financial pressures for councils across the country, government has provided Stockport with negligible extra funding, whilst inflation continues to rise. The new funding formulas have no consideration for what kind of support a heavily polarised borough like ours needs. We once again call on the government to show some ambition and meaningfully reform local government finance, taxation, and social care, before it is too late.”
