Rochdale Council ‘nowhere near’ needing government bailout despite facing financial pressures

Rochdale Council offices at Number One Riverside

Rochdale Council has a budget gap of £3.4m – but a senior councillor insists the authority is ‘nowhere near’ in need of a government bailout.

Although recent finance papers suggest the council would be in the red at the end of the financial year, there is a contingency budget in place to deal with it. Due to overspends, particularly in children’s services and integrated care, the council is projected to be £3.4m out of pocket by April 2025.

Demand and cost for placing children in homes as well as staffing in the service is the biggest burden to the local council. In integrated care and health, finance papers suggest the national and regional push to discharge people from hospital is also impacting on council coffers.

More health complexities at the point of discharge is leading to more expensive packages of care. 

Councillor Carol Wardle, portfolio holder for finance and growth, explained that previous budget savings from other departments goes into a contingency fund – which is used to plug up any gaps caused by overspends.

The council’s plan in the long-term is to cut costs in children’s services by reducing the number of young people in care. In-house reports say this would be done by increasing the number of foster carers and placing children with these, extended family, or under the care of special guardianships.

Despite its £3.4m overspend, Rochdale appears to be in a better position than other Greater Manchester councils. Manchester City Council just announced plans to possibly introduce higher parking fees, £180 litter fines and increased social care charges to plug a £29m budget gap.

Councillor Wardle explained that although her finance team are always looking for ways to save money, they’re not taking such drastic measures yet.

She added: “We have such a good finance team they have kept their eyes on what is happening, not just this year but future years as well. We are very prudent so we are nowhere near getting help from the government.”

An example of the council’s ongoing budget savings is showcased in children’s services as well, with the 2024/25 budget target for £1.4m savings almost being achieved. This cash relates to other aspects of the service from where they are overspending.

George Lythgoe, Local Democracy Reporter