Manchester has solved a problem, but it will be back almost immediately - and it'll be worse

In a fortnight, Manchester council will set a balanced budget. For another year, the books will balance. But it's about to get a lot harder.

Bosses have delivered dire warnings about the town hall's finances being on a 'cliff edge', with spending plans for 2025 meaning they will have to completely drain their 'rainy day' reserves.

Leaders will have to find a way to close a £29m gap next year - and plugging a £41m black hole the year after. There was little love for the Conservative government on Valentine’s Day as the council's Labour executive met.

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Councillor Rabnawaz Akbar, the authority’s lead finance member, said getting to this point - where a balanced budget plan has been finalised - has been very difficult. There have been last-minute headaches to account for, such as a £10m increase in costs coming ‘in the last two months’, a report for the resources committee meeting last week said.

That was driven by ‘an increase in children's placement numbers and costs, further significant pressures across adult social care budgets and some worrying trends in asylum seekers, migrant policy, [and] homelessness’.

Initially, this year’s budget deficit was £26m council papers said. It was closed by making £11.2m of savings and ‘a further £15m of measures which relate to extra income or deferred spending’. The proposed budget — including a 4.99 percent council tax rise — was endorsed by the executive, which met without council leader Bev Craig. It is almost certain to pass at the full council meeting on March 1, such is the Labour majority in the council chamber.

The problem is solved for 2024/25. But it will come back almost immediately.

The complexity of putting