MP says Wigan borough ‘to get £25.6m boost’ – but council doesn’t know if it’s correct

News of the funding allocation was announced by Leigh’s Conservative MP James Grundy on his website, but has not been confirmed by Wigan council. He reported the 7.5 per cent cash boost, which comes as the town hall prepares to set its revenue budget for the year ahead at a key cabinet meeting on Thursday (February 15).

This is against the backdrop of a report by Tony Clarke, Wigan’s director of finance and legal, to be presented to councillors that says a total of £38.3m of savings are required in Wigan over the next three years – some £10.1m for the 12 months ahead. It also recommended a 4.99pc increase in council tax for local residents.

Mr Grundy’s post said: “Local authorities play a vital role in our communities, providing crucial local services that people rely on, but we know the effect of Covid and the war in Ukraine have increased cost pressures.

“It is great news that Wigan council will have an additional £25.6m in funding this year [in the Local Government Finance Settlement]. These additional funds will help our local leaders make long-term decisions to deliver a brighter future for their areas.”

Secretary of State for Levelling Up, Housing and Communities, Michael Gove has also weighed in, saying in the same post: “I have set out the final settlement for 2024/25.

“This makes available up to £64.7bn for local authorities in England, an increase in core spending power of up to £4.5bn, or 7.5 per cent in cash terms on 2023/24.

“This settlement, and the changes we have made to address concerns raised through the consultation, will provide local authorities with the tools to support their local communities, continue to reform their services for the long-term, and help communities prepare for the future.”

However, Coun Nazia Rehman, the local authority’s cabinet portfolio member for finance, resources and transformation could not say whether Mr Grundy’s announcement was correct or not.

But she said: “This announcement relies on the assumption that all councils will increase council tax by the maximum allowable percentages and that tax bases will continue to grow at a rate of their five-year average.

“Wigan Council is yet to finalise its plans on any changes to council tax for the next financial year. The council has had £180m cut from its budget since the start of austerity [in 2010] and local authorities are facing an unfair burden.

“Recent announcements from central government were nowhere near enough to ease longstanding pressures. The Government is trying to stick plasters and it is too little, too late.

“Without a medium or long-term settlement from national government the challenges to setting a balanced budget – with both inflationary and demand pressures at the forefront – will only continue to increase.

“We continue to add our voice to the calls for fair funding for local services.”

Wigan’s total funding from business rates and council tax for the year ahead will amount to £271m, if the council tax goes up by 4.99 per cent.

This year, it has cost £265.25m to run the council’s services, but inflation and extra costs have pushed up that figure for the year ahead by £24.6m. Although grants have been received to the tune of £8.7m, it still means the council now needs to save £10.1m to balance the books.

Similar to other councils, the greatest resources are required by children’s and adult social care.

The cost of caring for “looked after children” and residential placements with external providers is expected to rise by £9m over the next three years.

“The cohort of children entering care continues to be carefully monitored and is mainly made up of babies and younger children in line with the right direction of travel to achieve permanence for these children earlier in their lives,” Mr Clarke’s report reads.

“This is in direct contrast to bringing into care older children and younger people when issues are more complex and it is more difficult to achieve a permanent alternative to being at home.”

In addition, Wigan has the highest number of residents over the age of 65 in Greater Manchester.

The report says: “The number and complexity of people requiring adult social care is also set to continue to increase year on year.

"This includes support to young adults transitioning from children’s services, ongoing demand pressures through hospital discharge and the impact of an ageing population.

“Growth of £10.2m has been included with the medium-term financial plan [over the next three years] to recognise these pressures.”

Mr Clarke says in the report: “I am able to provide members [councillors] that I am proposing a balanced budget with no support from earmarked reserves.

“Although there continues to be a budget gap this is due to the inclusion of continued growth for both adults and children’s services.”