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Trafford still faces £18.4m budget gap despite cutting costs during Covid
20.06.2022 - 16:23 / manchestereveningnews.co.uk
Trafford council has cut costs during Covid - but still faces a £18.4 million budget gap.
The authority secured an underspend of £1.53m over the last financial year thanks to government grants and budget management. The funds have been transferred to the council’s budget support savings pot.
However, the council still faces a long-term budget pressure of £18.4m over the next three years. The budget monitoring report, due to be discussed at an executive meeting this evening, said: “It is fair to say that projecting the financial outturn during the year has been challenging given the level of uncertainty in the economy, ranging from the ongoing fallout from the pandemic and further lockdowns during the year, the economic fallout from the conflict within Ukraine and the escalating levels of inflation.
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“The economic uncertainty will continue to be felt for some time to come and must be managed alongside a significant budget gap of £18.4m in our Medium Term Financial Plan for 2023 to 2025.”
Exactly how this gap will be closed will be up to the council’s executive member for finance and council officers in their team.
Future pressures on the already strained budget, including the recent sharp rise in inflation, which is expected to continue, will also come into play.
The report added: “The favourable outturn in the current year has given the opportunity to bolster our reserves further in order to manage the scale of the challenges the council faces in delivering a sustainable budget over the medium term.
“Although the favourable outturn for the current year is encouraging, many positive movements are one off in nature and cannot be used to reduce the recurrent budget gap.”
Despite the overall underspend this year,
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