The Council and democracy Our budget 2024/25

Our budget for spending on Council services for the year to April 2025 is £804million. 

The budget focuses on key areas that will ensure the ongoing success of the city. It continues to ensure the most vulnerable people have the support – and funded services – they need. And it ensures help is available for those struggling through the cost-of-living crisis. 

After a challenging Government funding settlement, the Council has balanced its budget for 2024/25. We used measures including planned use of reserves, careful management of current budgets and budget cuts.   

But reserves can only be used once. So the Council only uses them when they’re needed the most. Once they’re gone, the city is less able to absorb the impact of future financial challenges.   

Austerity measures and cuts to local authority funding mean the Council has had to make £443m in savings since 2010. At the same time as we’ve seen unprecedented population growth and inflationary pressures. And rising demand for services, especially for vulnerable young people and adults.  

Manchester will continue to face challenges. If Government finance settlements do not help meet rising costs and inflationary pressures in future years, Manchester will be under pressure to balance its budget and ensure essential services continue. Currently, the funding gap expected in 2025/26 is £29m, which will increase to £41m by 2026/27. 

How our budget is spent 

The largest part supports older people, children and those with learning disabilities. As well as public health.  

It’s also used to help prevent homelessness. And to provide accommodation and other support for those experiencing homelessness.  

  • Adult Social Care: £247.4m (30%) 
  • Children and Education Services: £156.4m (19%) 
  • Public Health: £44.5m (5%) 
  • Homelessness: £30.7m (4%) 

A large slice of the budget is devoted to a wide range of services in your neighbourhoods. It’s used to empty your bins and to look after your parks, libraries, leisure centres and roads.  

  • Neighbourhood Services: £109.3m (13%) 

Another significant element is corporate budgets. They help fund transport and investment in building projects. And they provide contingency funding to help plan for inflation and other unexpected costs.  

  • Corporate budgets: £116m (14%) 

There’s also funding for what we call the Core. These are the behind-the-scenes services at the heart of the Council. They enable our staff to work on your priorities and make sure this is a well-run city.  

  • Core: £112.5m (14%) 

Finally, there’s Growth and Development. This includes building much-needed housing and attracting jobs and investment to the city. As well as helping ensure Manchester people have the skills to share in that success. 

These services cost around £6m to deliver. But the Growth and Development directorate brings in more money than it costs. It does this by commercially renting out buildings owned by the Council. So, it helps to reduce the overall budget. 

  • Growth and Development: –£12.8m  


Our priorities for the next 12 months include investing in helping people through the cost-of-living crisis. 

We’ve protected our £35m investment to help residents struggling to make ends meet. This includes hardship funds and increased Council Tax Support (to keep bills much lower for the poorest households).  

As well as providing for immediate needs, we’re tackling causes of hardship and inequality. And boosting residents’ opportunities for a better future.  

We’re spending more than £50m in 2024/25 on building new homes. This will help us reach our target of 10,000 new council, social and affordable homes over a decade.   

We’re investing in retrofitting homes to reduce people’s energy bills. And we’re improving ways to get around by foot and by bike. These improvements have benefits way beyond cutting harmful carbon emissions. They’re a big benefit for residents’ health and wellbeing. 

Our budgets also invest to prevent the need for costlier spending in the future. We do this by carefully targeting spending now – where it’s most needed.  

All this is underpinned by our commitment to reduce carbon emissions and combat climate change. So far, we’ve secured £319m to support our climate change action plan. Much of this is external funding which doesn’t come from our budget.   

Where the money comes from 

  • Your council tax provides 28.5% (£231.03m) 
  • Business rates contribute 50.2% (£407m) 
  • Grants and other external funding raise 17.7% (£143.1m) 
  • Reserves cover 3.6% (£29.38m) 


Watch our budget 2024/25 video

Read the full details of our budget in the committee papers 

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