Council funding is broken. 

Trafford Council is finding it harder and harder to find the money to meet the needs of residents.

The authority must present a balanced budget to the Council. This meeting will take place at Trafford Town Hall on Wednesday 21st February. 

We will present a balanced budget, but this has only been possible after many tough decisions.

After 14 years of Tory austerity, Trafford councillors are calling for a change in how local government is funded. Only this will allow councils to make sure they can deliver essential services in the years to come. 

Why do Trafford Council have less money?

Local government funding has been reduced across the UK. This funding reduction has been more severe in Trafford than in other areas. 

Trafford Council receives lower funding than neighbouring councils. Trafford is one of the lowest-funded councils in England. They receive around £11m less a year than similar-sized authorities.

On top of this, Trafford Council has a lower-than-average council tax revenue. Trafford’s council tax is the second cheapest in Greater Manchester.

What does this mean for the year ahead?

Despite already having less money, the government is reducing Trafford Council’s budget.

Since 2010 Trafford Council has lost £288 million, a real-term cut of 60%.

Councillors have worked hard to find £17.8m to close the budget gap this year. It is estimated the council will need to find £35m more from 2025-2027. Trafford Council budgets are getting smaller and smaller. 

As well as the budget shrinking, interest rates and energy costs have increased.

Trafford Council is also seeing the need for services grow, as people struggle to make ends meet.

The reality is that Trafford Council has less money, but costs to provide services are rising.  

Despite tough circumstances, the budget has been balanced this year. But we can’t carry on like this. For too long the government has turned a blind eye to the broken system of local council funding. This must change.  

Are other councils struggling too?

Yes. This problem is not unique to Trafford Council. Lots of Councils across the UK have been struggling too. So many, the New Statesman has produced a ‘Council bankruptcy tracker.’

Where do Trafford Council get funding from?

Trafford Council gets funding from several places.

This includes:

• Grants from the government 
• Business rates (paid by businesses) 
• Council tax (paid by residents)  
• Money made by Trafford Council through their investments
• Capital funding (to deliver large-scale projects, which must be spent on these alone) 

What do Trafford Council spend money on?

Lots of people wonder how their council tax is spent.

People are often surprised when they see a breakdown of where the money goes at Trafford Council. 

Trafford Council have to pay for lots of services for residents including:

Adult services – 35.2%

Includes:

• Care support packages
• Supporting people with learning disabilities
• and looking after the health of residents

Children’s services – 23.4%

Includes:

• Running children’s homes
• Providing youth services
• and supporting children with complex needs.

Place – 17.9%

Includes:

• Looking after Trafford Council assets
• Maintaining highways
• Developing our town centres
• Keeping community centres and other Council properties open.

Council-wide services – 12%

Includes:

• Staff pay
• Staff pension contributions 
• Manages payments including the transport levy and coroner’s fees.

Finance and Systems – 4.4%

Includes:

• Processing grants and generating income,
• Collecting grant money, parking fines, business rates and council tax.

Strategy and Resources – 4.4%

Includes:

• Looking after council staff
• Provision of school meal services 
• and cleaning staff.

Legal and Governance – 1.7%

Includes:

• Delivering services like registrars and coroners
• Making sure the council is safe and legal

Sport and Leisure – 0.4%

School Crossing Patrols – 0.2%

Music service – 0.2%

As you can see, almost 60% of our budget is spent supporting children and vulnerable adults. Trafford Council truly supports our residents from cradle to the grave. 

Trafford Council has a legal duty to provide some services like adult and children’s care. It is vital Trafford Council cares for the most vulnerable people, but this can be very expensive. An example of a costly but necessary spend is £500 a week for the long-term care of an older person in their home.

The cost of delivering these services has grown, but Trafford Council’s income has not kept up. This means Trafford Council now has less money to spend on other things.  

These costs are also likely to increase further over the years, as people are living longer. 

What needs to change?

The government needs to change the way it funds local councils. There needs to be an urgent review of the way the government calculates how much funding a council gets.

At the moment, other local authorities receive far more money than Trafford Council. A fairer funding formula needs to be created, to give councils the right money to cover what they deliver.

Since 2010, Trafford Council has already made significant cuts. This makes further cuts almost impossible. Lots of other councils across the UK are in the same position. This cannot continue.

Trafford Council Leader Councillor Tom Ross has called on the government to review how they fund local councils.

He has also written to Michael Gove (the minister who oversees local council funding) asking him to fund Trafford Council fairly. But the situation remains the same.

Trafford Council urgently needs the government to provide a fairer funding package.

For too long the government has turned a blind eye to the broken local council funding. Trafford Labour councillors are calling for urgent action from the government. Only they can fix council funding and allow Trafford Council to continue delivering in the years to come.