Theme One: Public service reform and transformation of services to better use resources
Manchester City Council has delivered significant improvements in outcomes for residents and supported the strong growth of the city in recent years. Our approach has been to invest for the long term in public service reform, good quality universal services, and enabling economic growth. Despite the significant budget challenges we have faced since 2010, Manchester has held its nerve to invest effectively, underpinned by a strong commitment to evidence-based decision making and robust evaluation.
Manchester has made ongoing and significant improvements in productivity. This is evidenced by the successful delivery of over £440 million of savings from 2010/11 to 2023/24 inclusive due to Government funding cuts and increased demand. This has required the loss of around 4,000 full time equivalent staff, around 40% of the Council’s workforce. Compared to other Councils, Manchester has had received a disproportionate share of the cuts to Local Government funding. Our Spending Power (as defined by Government) has increased by just 5.1% in cash terms since 2010/11, compared to the England average of 17.2% - a £110 funding gap for each resident of Manchester.
Manchester’s budget strategy has been to:
- Take tough decisions early, make difficult decisions on cost reduction and work differently
- Invest in demand management and prevention
- Deliver planned savings and replace those that could not be implemented as planned
- Hold a robust position on reserves and using them wisely
- Prioritise investments which are important to residents such as neighbourhood services, cost of living support, and protecting the most vulnerable
Manchester’s budget report for 2024/25 sets out additional savings required of £32 million over the next two years. It is currently estimated that a further £50 million of savings will be required by 2026/27. Productivity improvements will be a key theme of these savings.
Some examples of Manchester’s work to deliver significant public service reform are:
- Children’s: 2% fewer children in care since 2008 compared to a 35% increase nationally and a 27% increase in our population. LAC rate per 10,000 children has reduced from 137 in 2008 and 122 in 2014 to 104 in December 2023 (90 excluding Unaccompanied Asylum Seeking Children). Supported by evidence based interventions such as Early Help, which has worked with over 17,000 families since 2010 and impacts such as 83% of those with Child in Need status no longer having this status at the end of intervention and 12 months after
- Adults: Better Outcomes, Better Lives (BOBL) is Manchester’s Adults reform programme as part of Manchester Local Care Organisation. The ambition is to Reduce, Prevent and Delay the need for Care, through strengths based approaches and empowering front line staff. The programme has supported savings of £18 million 2020-22 and a further £8.5 million 2023-26. Evidence of cost avoided through Reablement (70% of people need no further care) and Technology Enabled Care, and 66% of calls diverted at the front door
- Future Shape of the Council: internal digital transformation programme that will deliver at least £5 million efficiency savings
- Capital programme: The Council continues to invest in essential infrastructure projects across the city to support its aspirations and strategic aims. The Council has also reviewed its Capital approval process and continues to monitor project approvals to achieve maximum value for money invested. The current expenditure forecasts show that the financing costs remain affordable within the available budgets. All capital financing decisions are made to maximise the resources available to the Council and fund in the most efficient way. All capital investments have been within the city boundaries.