Salford’s financial future, including how to deal with a projected budget gap of £35m due to increased costs and rising demand for services, is set to be discussed next week.
A financial strategy report published by the council’s community and neighbourhood scrutiny panel and set for discussion November 17, outlines the “significant financial challenges” that have resulted in a forecasted £35m shortfall for 2026/27 and 2027/28 budgets.
The budget gap is forecasted despite the recent rise in council tax of nearly 5 per cent.
Areas of particular financial concern highlighted by the report include social care, special educational needs and housing, rising costs and reductions in Government funding.
The Governments’ new ‘Fair Funding’ proposals are set to minimally impact the Council, with the report stating: “Salford is expected to see only marginal gains, with some existing grants being absorbed centrally.
“There has been a less positive impact than expected due to fairly generous existing grant allocations for Social Care, New Homes Bonus and Recovery grants all of which have been swept into the central pot”
Increasing pressures have also come from environmental services which have been impacted by inflation across “key cost areas” like fuel, food and vehicle maintenance.
These budgetary pressures have been exemplified by population growth as Salford’s population increased by 15.4% between 2011 and 2021, the largest percentage increase in the North West.
Skills and work, particularly discussion around NEETs (Not in Education, Employment, or Training) is set to be addressed, with the NEET service being brought in-house in Spring 2026, strengthening local control.
The report states that by doing this, the council hopes to increase face-to-face support in communities to help ensure that “young people get the support they need to thrive”.
This decision is aligned with the Salford Employment and Skills Strategy which aims to get more young people and adults into employment as well as working residents progressing in their careers.
The report concludes by saying the council aims to deliver across a range of services including their key priorities, with the strategy to do this emphasising “prudent financial management, risk assessment, and the need for ongoing adaptation.”
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