Budget recovery plan reduces Tameside Council’s forecast overspend

TAMESIDE Council’s forecast overspend has reduced as its budget recovery plan takes effect.

A predicted overspend of £15million for 2026/27, made following the first quarter of the financial year, has been reduced by £2.4million to £12.6million by the half-way point of the financial year.

The forecast overspend is due to rising demand, inflationary costs and specific service pressures, which many local authorities across the country are also experiencing. These include increased demand for Adults Social Care Services, children and young people with special education needs (SEND), and homelessness services, and increasing costs, such as fuel prices.

The council has taken early action to tackle the forecast overspend and the budget recovery plan has already realised a reduction in the forecast for this year. The budget recovery plan will remain in place to further reduce the forecast overspend over the remainder of the year and includes detailed assessment of planned savings, targeted expenditure controls, enhanced financial monitoring, service-led transformation activity, and exploring collaborative solutions with partners and stakeholders.

The council has set aside a General Fund reserve of £15.7million – 5% of the current budget – in case of overspends. Decisive action is being taken to avoid using reserves to ensure future financial sustainability.

Tameside Council Executive Member for Finance and Resources, Councillor Hugh Roderick said: "The reduction in the forecast overspend shows that the actions we've taken are starting to have an impact, but we know there is still a long way to go. Demand and costs continue to place significant pressure on council budgets, both here and across the country.

“We're focused on managing public money responsibly, reducing unnecessary spending and protecting the services residents depend on. By taking action now, we can continue to strengthen the council's financial position and reduce the need to use reserves."