Councils in Greater Manchester have had their budgets cut by nearly a quarter over the last 14 years, according to new research.
Across England, the poorest councils have faced real-term cuts worth almost three times as much as the richest local authorities, the research by a special interest group has revealed.
SIGOMA, the Special Interest Group of Municipal Authorities, found that the biggest real-term cut to a council in Greater Manchester was nearly 30 per cent.
Manchester Council’s budget is now worth 29.9 per cent less than it was in 2010/11 financial year when the figures are adjusted for inflation, SIGOMA revealed.
In Oldham, there has been a 29.1 per cent cut, according to the data.
Last year, a Labour councillor said the scale of council cuts in Manchester since austerity would be enough to buy Manchester United.
Since 2010, the town hall says it has had to make savings of £428m a year to cope with funding cuts under and keep up with inflation costs and population growth.
According to Manchester Council, if it had only received the average cut to its funding, it would have £77m a year more to spend on services.
To plug the shortfall, local authorities across the country have been raising council tax.
But less than a third of Manchester town hall’s budget comes from council tax.
Its Labour leader says the whole council tax system is "fundamentally unfair" because poorer areas like Manchester cannot collect as much money from it.
Stockport Council’s budget is said to be worth 17.9 per cent less now while Trafford’s is down 21 per cent in that time.
Meanwhile, Surrey County Council, where Chancellor Jeremy Hunt is an MP, saw spending power fall by 8.3 per cent during the same period.
The data shows that the 10 richest councils in the country received a 10.1 per cent cut on average while the 10 poorest councils in England faced a real-term cut of 28.3 per cent.
Barnsley Council’s Labour leader Stephen Houghton who chairs the SIGOMA – a group which all councils in Greater Manchester belongs to – said the current funding model tends to reward areas with high-value housing and thriving businesses.
Sir Stephen said that this has resulted in an increased disparity between the wealthiest areas of England which rely less on grant funding and can raise more from council tax, business rates and other funding sources.
He said: “The poorest areas have seen the biggest cuts and for ‘levelling up’ to mean anything the government should be looking to reverse these cuts and create a funding formula that funding according to council needs.”
It comes as SIGOMA unveils a new manifesto titled "For a Sustainable and Fairer Future". The manifesto suggests a series or local government reforms.
SIGOMA’s research found councils in Greater Manchester have faced an average real-term cut of 24.5 per cent.
Each council has been affected as follows:
Bolton -25.3 per cent
Bury -22.0 per cent
Manchester -29.9 per cent
Oldham -29.1 per cent
Rochdale -28.4 per cent
Salford -22.9 per cent
Stockport -17.9 per cent
Tameside -23.3 per cent
Trafford -21.0 per cent
Wigan -25.1 per cent
The Department for Levelling Up, Housing and Communities was contacted for comment but declined due to restrictions during the pre-election period.
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