Canal27ways

Category: Trafford Council

  • Setting Trafford’s Budget Pt 3 (Council Income)

    Setting Trafford’s Budget Pt 3 (Council Income)

    It makes sense to look at Trafford’s income on its own. Trafford’s income is largely a case of what you see is what you get, with just a few areas of choice, notably the Green Bin charge which goes into reserves.

    The Current Budget (25/26)

    The cost of Trafford’s current services being delivered for this year is £233m. This has come from:

    • Business Rates £81m
    • Council Tax £139m
    • Reserves £3m
    • Capitalisation Direction £10m

    It’s worth emphasising that there is absolutely no mention of Government funding. This conceals the enormous impact Government makes on the distribution of collected business rates.

    Trafford collects a lot more than £81m from business rates on its businesses. In 24/25 the amount was £152m. So where’s that >£70m gone?

    Trafford’s Council Tax Leaflet 25/26

    This leaflet was issued prior to a public health settlement that slightly boosted the budget. The figures at the top of this section are correct.

    The Local Government Finance Settlement for 26/27

    Despite the fact Trafford’s funding is entirely locally sourced, the Government (of all persuasions) is never going to allow Trafford free rein. In December each year the government issues the finance settlement.

    For 26/27 England’s average increase in spending will be 5.7%.

    Trafford’s increase will be 1.8%.

    This assumes Trafford will increase its council tax by the 4.99% limit.

    So, the starting point for Trafford’s budget setting is council tax going up by 4.99%, yet Trafford’s core spending will nudge up just 1.8%.

    Only 1.8%! Where’s my council tax going? Where’s the increase going?

    It’s a fair question to ask.

    I suspect that both capitalisation direction (borrowing) and use of reserves were contributing to the current year’s spending power. The trouble is that they were one-offs and we haven’t got them next year. And it has to be stated that they haven’t got us out of a hole and the reserves are finite.

    What about other councils?

    We’re not alone nationally, but within Greater Manchester it almost feels as though we are. Greater Manchester has always been mix of the relatively prosperous alongside some of the poorest. That missing chunk of business rates is retained within Greater Manchester to support less prosperous areas here. That used to be fair.

    My view is that the latest local government settlement is putting strain on the Greater Manchester consensus. Manchester Council is seeing a huge increase from this settlement, yet Trafford is a net contributor.

    Nonetheless, our council tax on domestic properties is still low in comparison to our neighbours. Does it need to go higher again?

    What next?

    The draft budget needs to be published by midnight tonight. There has to be an emphasis on the word ‘draft’. Income is only half the story. We need the draft budget to understand spending pressures or easements.

    Technically, the Local Government Finance Settlement is under consultation. I’m confident Trafford will have been making the strongest representation. There’s been some discussion in political journals that the calculation Government is making is favouring London by weighting the cost of housing. Instinctively, that feels like double counting since housing costs have to contribute to deprivation which is the major weighting within the settlement.

    However, for Government to make changes to the formula would change everyone’s settlement. They’re not going to change the formula.

    I think we do need to look at the Greater Manchester formula.

    With regard to last year’s exceptional permission to borrow, I don’t think we ought to accept a regurgitation of that permission to borrow yet more money if that turns out to be government’s solution. That way is one-way and it ends in tears.

    I want to understand business rate growth and that’s’ something I’m keen to see in the report. Trafford has benefited from growing its business rate base. That’s being reset by government but looking at the Old Trafford area, there is still potential to grow it still and that’s an aspect to give some optimism.

    Finally,

    The selfish reason for writing this that the writing is helping me understand the budget. I don’t want to rely on officers. I’ve had to go to core material. Hopefully, I’m able to share some of that knowledge and test it,

  • Setting Trafford’s Budget Pt 2

    Setting Trafford’s Budget Pt 2

    We’re waiting for the draft budget to be published which is scheduled as it stands for the 6th January 2026 as part of the reports for the Executive on 14th January 2026.

    I’d be surprised if the Government issued anything further in the meantime. Although, you’d anticipate a lot of one to one communication with Councils negatively affected by the settlement proposals. Trafford is certainly looking to discuss.

    Changes to funding formulas can throw up huge anomalies. The Minister is well aware that Trafford council, which covers part of my constituency, is one of those anomalies. Will she commit to work with my Trafford parliamentary colleagues, Trafford council and me to see if we can iron out some of those issues?

    Despite there being little to report, I do think the data published by the Government each year on council tax changes is worth a glance, particularly as Alison McGovern seemed to put some stall on average council tax.

    Live Tables on Council Tax

    The table below compares the rates paid in Trafford to the average in England* and to Stockport. The year 25/26 is the first time that Trafford has closed the gap by even the most marginal amount.

    *not totally sure I’m comparing like for like on the average table as both county councils and mayors are not universal. As Stockport is a GM council, there’s much more assurance in the comparison.

    Graph showing increase in Band D council tax from 1993 to 2026

    Trafford still has a low council tax regime. Over the decades this meant Trafford denying itself millions year on year. Some might argue that this is due to Trafford having a tight political competition for control, but if anything, the competition in Stockport has been even more fierce. So, it is what it is, but isn’t allowing sudden changes in income to be cushioned against.

    First Post on the Budget

  • Setting Trafford’s Budget Pt 1

    Setting Trafford’s Budget Pt 1

    It’s my intention that this post is the first in a series of pieces on setting Trafford’s 26/27 budget. One of the main motives for writing it is to get my own understanding of it up to speed. They say that the best form of learning is getting to a position where I can explain it. You’ll have gathered that I am not yet at that point.

    So, a starting gun was fired on Wednesday 17th December 2025 with the Government’s publication of a library of documents and a statement to the House of Commons from Alison McGovern, Minister of State (Housing, Communities and Local Government).

    Link to Parliament TV

    It takes just 90 seconds for the Minister to get to a key theme of this Labour Government’s approach to financing local government.

    By breaking the link between funding and deprivation, the Tories punished poorer councils. Year after year, they exacerbated inequality. As a result, too many places in this country feel forgotten and left to fend for themselves…

    …It is why, according to our analysis, whereas under the old system deprivation scores could account for only 25% of variation in per capita funding applications, under this settlement it is up to 75%, with other important factors such as coastline, miles of road or visitor numbers making up the rest.

    So, we know that poorer councils will do better from this settlement than others and Trafford is not one of the poorest. As a Labour man, I totally support the intent. We will need to see whether Trafford is getting sufficient funding. That’s a process that will take us right through to setting the budget in March.

    Resources

    I’ll add to these as we proceed with budget setting but there’s already vital material online.

    Government Publications (Ministry of Housing, Community and Local Government – MHCLG)

    Local Government Association Material

    • LGA briefing A good summary and they’ll add more as we progress.

    Institute for Financial Studies they’re putting some good analysis and comment out there throughout this process.

    Featured Photo by RDNE Stock project: https://www.pexels.com/photo/marketing-exit-desk-notebook-7414218/

  • Fearing the worst, hoping for the best.

    Fearing the worst, hoping for the best.

    Trafford awaits its provisional financial settlement

    Might even be today, but more likely tomorrow or Thursday.

    This is the week where councils learn the amount that central government is going to top up their funding.

    We know the general rules that are going to apply. We know that the Government wants to support councils with high levels of deprivation.

    Last year Trafford had to apply for exceptional financial support which allowed the council to increase council tax beyond the normal capping of 4.99% and it provided the ability to borrow up to £9.6m to support the council’s in year budget.

    The council are currently anticipating a modest underspend of about £0.5m on this year’s budget. That would allow either reducing that £9.6m capitalisation for the year; or a small boost to the reserves.

    If it’s feasible, I’d prefer supplementing the reserves. In my view, they’re far too low.

    A favourable settlement from government will help narrow the funding gap. If it’s unfavourable, it presents some difficult choices.

    The Institute for Financial Studies (IFS) put out some analysis of the government’s budget approach for local government last month and it’s hard to see Trafford being one of the winners. Most of the policy shifts seem to work against Trafford, so it’s definitely a worrying wait but we’ll see.

    Image used under creative commons

    NEXT Conference from Berlin, Deutschland, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, via Wikimedia Commons

  • Pee, Poo and Paper Rules and a trip to Davyhulme Works.

    Pee, Poo and Paper Rules and a trip to Davyhulme Works.

    A treat to visit the treatment works.

    Davyhulme Sewage Works is a fascinating place. I was one of three Trafford councillors to take up a guided tour provided by United Utilities. It’s a place I’ve always been aware of; famously because of its smells, but also because of the space it takes up alongside the ship canal. As a youngster I used to cycle over to Barton Airport to watch the planes and we’d take short-cuts over water courses and outflows to get to the locks. It’s a huge site.

    The pong associated with the sewage works has noticeably receded. I’m not going to pretend it’s a become a canal-side idyll, but there’s no doubt there’s been significant improvement. It was also apparent that the technology is also improving even if the basic infrastructure still has components of the original 1894 works.

    Davyhulme is long associated with technological innovation and we really don’t give enough attention to the development here in 1914. Searching the web just throws up the odd burst of enthusiastic exaltation popping up anywhere in the world.

    Examples from the web

    En 1914, les chercheurs anglais Ardern et Lockett découvrent que la dépollution est beaucoup plus rapide lorsque l’eau usée à traiter est mise en contact avec une biomasse épuratrice [4] déjà formée. Ils déposent ainsi le premier brevet sur le procédé d’épuration qui sera dénommé procédé à boues activées.

    A Call for Recognition of Ardern and Lockett in Trafford

    How did we come to miss celebrating the centenary in 2014? Ardern and Lockett are celebrated by sewage engineers all over the world. Why no statues, no streets named after them? Are we ashamed of poo?

    Where are we now?

    The process Ardern and Lockett developed is still in use all over the world. The demand on it has never been greater. Of course it’s been improved and there are new investments coming through.

    Davyhulme wastewater treatment works is set to undergo an initial investment of around £350m over the next five years to ensure it meets the needs of a growing population and higher environmental standards that will improve water quality in the Manchester Ship Canal.

    Link to press release

    But…

    Clearly, I welcome this investment. However, it is long overdue.

    I don’t believe that water should be privatised. It is to the everlasting shame of the Conservative Party that we allowed our infrastructure to deteriorate to such an extent that processes I’m so proud of at Davyhulme and each and every other treatment works have to by-passed when the capacity can’t cope with sewage discharged directly into the rivers and canals.

    We are where we are and whilst I abhor the use of rivers, I’ve got to recognise that the infrastructure that first receives the rain water as it comes down on us in ever increasing downpours is under the council control.

    We’ve got to keep our drains and sewers clear. We’ve got to encourage each other to respect the drains and toilet flushes. Wipes should never go down the loo. Even if the manufacturers claim their product to be bio-degradable, the wipes never degrade quick enough not to contribute to the giant fat-balls that block the sewars. And even when the wipes make it through the system, they’ve still got to be removed and taken to landfill.

    Mea Culpa

    It’s not just wet wipes. I might not be guilty of disposing of those in the system, but I saw the amount of grit and small pebbles that make it through to Davyhulme, which is but a small proportion of the amount building up in our drains.

    It was impossible to avoid thinking of ‘Stretford Beach’ and the amount of pebbles building up from there in the drains. Should we ever be using pebble and grit in ways that it’s impossible to avoid large amounts entering the drains?

    Let’s keep the drains flowing.

    Finally,

    Strongly recommend a visit to Davyhulme Sewage Works. It’s absolutely fascinating.

    In which a visit to Davyhulme Sewage works becomes a cause of local historical pride; and a rethink in terms of what what we're putting in our drains.
    Edward Ardern smoking and William Lockett sat front right (photographer unknown)

    Resources

    A Visit to Cassington Sewage Treatment Works – 12-29-2021 in Oxford, UK

    Davyhulme Sewage Works – Wikipedia

    Call for Nominations for MEWE SG Awards: Ardern-Lockett Award 2025, Early and Mid-Career Awards 2025 – International Water Association

    A historical appraisal of the significance of Ardern and Lockett by Nigel Horan, reader in civil engineering

    Featured image at top of post is copyright of United Utilities and is published under legitimate interest use.

  • Gloomy Outlook for Council Finances

    Gloomy Outlook for Council Finances

    Fierce Winds Conspire, The Dark clouds Do Gather……

    There are times when, a good report with confirmation that you are doing everything that you should do, is the last thing you want to hear. The storm is coming still. 

    We’ve actually had two reports on the council’s sustainability, one following the other. Neither of the two reports provides a route to delivering council services at a level the public aspires to.

    The second of these, our Corporate Peer Challenge, from the Local Government Association is stark reading, but it does little beyond telling us that we’re right to be concerned.

    The earlier report from the Chartered Institute of Public Finance and Accountancy (CIPFA) is the one that’s providing the action plan that came to Accounts and Audit Committee this week.

    There’s a danger that the issues are seen as temporary problems of liquidity that the government could solve. There’s a sense that we’re a special case and it’s nothing the public should worry about; we just need Government to listen. I worry that we’re internalising problems that we won’t solve without the public owning both the problems and the solutions.

    The public has an expectation that our parks and streets should be maintained to a much better standard than the council even dreams about. They do understand that not enough is being spent on them. They therefore have an expectation that if council tax rises, they will see an improvement. The very fact that we’re unable to meet that expectation is proof that the system is broken.

    I think the latest pronouncements from Government on future local government spending suggests that any hope of special treatment for Trafford has now receded. We’re going to have to deal with this.

    How do we balance the cost of funding statutory provision in child and adult care with delivering our everyday environmental services? Can we corral those everyday services so that they are directly commissioned by communities and not subjected to competing pressures in social care? How does community wealth building thrive in the current environment?

    Ideally, we can work with the combined authority and Mayor Andy Burnham. However, the risk is that the Government’s targeting of funding puts us on a different trajectory to most of our Greater Manchester colleague councils. That risk only emphasises the fact that communities are the only allies still irrevocably facing the coming storm with us.

    We must not fall into myopic thinking that balancing the books will be the only test that the public places on us. More than anything they judge us on the state of their neighbourhood. If we can’t insulate spending on neighbourhoods within the council’s spend, I think we ought to be considering alternative models. It may be time for parish councils and/or area boards to come of age.

    Photo by Eg Civic Ferio from Pexels: https://www.pexels.com/photo/sea-under-a-storm-cloud-18608634/