THREE councils within Greater Manchester will need to make savings of more than £100m collectively due to a ‘black hole’ in finances.

Manchester, Salford and Wigan Councils all have projected budget deficits in the millions for 2025/26, according to a BBC Shared Data Unit investigation. This means they will need to reduce spending where possible or break into their reserves in order to balance the books.

Unison warned that some councils across the country will not be able to provide basic services due to the £5 billion ‘black hole’ found in public finances.

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The Local Government Association said inflation, the Living Wage and energy costs were adding billions to budget books. Together, the 190 authorities surveyed said they would need to find £5.2bn to balance the books by April 2026 – even after making £2.5bn of cuts this year.

Every single council in Greater Manchester has committed to use up their financial reserves in order to balance the budget for 2023/24.

Wigan’s predicted cumulative shortfall for 25/26 is £32m, according to BBC Shared Data Unit statistics, which is 12.7 pc of the net budget. This means the predicted deficit per person is £97.04. 

However, the council have stated that their estimation of the shortfall number is actually slightly less at £26.7m.

Councillor Nazia Rehman, portfolio holder for finance, resources and transformation at Wigan Council, said: “Like councils up and down the country we continue to feel the pressure of budget restraints and urge the Government to find a more long-term solution for the funding of local authorities and the invaluable services we provide for our residents in their everyday lives.”

In Manchester, the predicted cumulative shortfall for 25/26 is £40m which is 5.4 pc of the net budget. This means the predicted deficit per person is £134.24.

In Salford, the predicted cumulative shortfall for 25/26 at Salford City Council is £36.35m, which is 14.9 pc of the net budget. This means the predicted deficit per person is £134.24.