Trafford Council has published its draft budget proposals for the next financial year, which aims to close a funding gap of £37m while also protecting essential front-line services.

Coronavirus has severely impacted the Council’s finances, causing a massive increase in spending which included funding the provision of support to some of the most vulnerable people in the borough, while at the same time having a devastating impact on revenue.

Proposals include a current vacancy freeze at the Council and flexible working options including a voluntary severance scheme and increasing car parking charges as well as increases in council tax

The council says it is also looking at reshaping the One Trafford Partnership Contract

The draft budget forms part of a three year budget strategy for the period 2021/22 to 2023/24 and is being proposed in the face of unprecedented financial uncertainty. The medium and longer term effects of COVID-19 on the borough’s economy are not yet known while the Council currently has no indication of the funding package or COVID-19 support from the Government for 2021/22 and beyond. This lack of clarity has added to the stress in the system from the pandemic and is making this the most difficult budget to set for many years.

Since 2010, the Council has achieved savings of £218m and the draft budget outlines how the Council is having to make up a further budget shortfall of £37m, with more than £15m of that due to direct pressures caused by the coronavirus. It is planned to bridge the gap with use of reserves up to £15m and planned savings and income of £14m with the Council’s investment strategy estimated to make net returns of £7m in 2021/22.

The budget also proposes a general increase of Council Tax by 1.99% alongside a 2% increase for the adult social care precept. Overall, that would mean an increase in Council Tax of 3.99% – the same as last year.

Even with all the proposals, a further £4.71m still needs to be found by February 2021 in order to balance the overall budget.

Cllr Tom Ross, Executive Member for Finance and Investment, said:

This has been the most challenging budget round we have ever encountered but we have been guided throughout the process by our vision of building the best future for everyone in Trafford. We have done the right thing by spending money helping out our residents and businesses through the difficult lockdown caused by the coronavirus – and we will continue to do so.

“At the same time, our income from things such as car parking, registrar services, licensing and school catering have all been hit. We are now having to use reserves to fund some of our shortfall but this is why we keep reserves, so that it can be used at times like this so we can protect our front-line services.”

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