Rochdale Council is facing a projected budget shortfall of over £17 million within the next three years, according to new financial documents.
The anticipated deficit for the 2028/29 financial year stands at £17.1 million, raising concerns about the long-term sustainability of local services in Greater Manchester.
The shortfall is expected to place significant pressure on the council to make further cuts and implement savings, unless a new and improved funding model for local authorities is introduced.
One of the main drivers behind the financial gap is the growing strain on adult and children’s social care services. Rising demand and escalating costs in these areas continue to place a burden on council finances.
Rochdale’s deputy chief finance officer outlined the ongoing budgetary challenges during the most recent town hall meeting. Contributing factors include higher-than-expected borrowing costs, following a slower-than-predicted reduction in interest rates.
Additionally, a proposed commercial lettings scheme did not materialise, which has further widened the financial gap.
Since the 2010/11 financial year, Rochdale Council has already delivered £192 million in ongoing savings from its revenue budget. Despite this, further financial pressures are looming. A budget gap of £1.6 million is forecast for the next financial year, followed by an additional £7.7 million the year after.
In response, the council’s finance team has already begun identifying potential areas for cuts and cost-saving measures.
While efforts are being made locally, there is growing hope that future government funding packages may alleviate some of the pressure on council services and staff, reducing the need for continual annual savings.
