Jeff Smith MP welcomes £331 million cash injection for Manchester City Council to boost local services.

Under the Tories, local authorities were starved of investment, with core spending power down by around a quarter since 2010. That put immense pressure on councils up and down the country, including Manchester City Council.

But the Labour Government has announced a radical overhaul of how local government is funded, reversing Rishi Sunak’s efforts to put money into wealthy shires and Tory seats.

Fair Funding is the next step on Labour’s journey to build stronger communities and reverse a decade and a half of austerity and decline under the Conservatives and Lib Dems.

England’s councils will get £78 billion for essential services with more money going to places with the greatest need.

The funding injection is aimed at restoring pride and opportunity in places that have been left behind, to get back what has been lost. Councils will have more resources available to bring back libraries, youth services, clean streets, and community hubs.

The money is part of the first multi-year funding settlement in over a decade, giving councils three years of financial certainty so they can plan ahead rather than firefight year to year.

In total, councils will see an 16 per cent increase in their core spending power compared to 2024-25 to pay for services including bin collections, housing, and children’s services.

And in a turning point for the way local government is funded, the outdated system that saw some councils build up savings while others faced financial collapse has been replaced.

Instead, places are now being funded using an evidence-based system that properly recognises local circumstances and the true costs of providing services in deprived communities.

Labour Secretary of State for Housing, Communities and Local Government Steve Reed said:

“This is a turning point, a chance to turn the page on a decade of cuts and callousness, and for local leaders to invest in getting back what has been lost – to bring back libraries, youth services, clean streets, and community hubs.

“For too long, deprived communities were left behind. Today we’re ending the postcode lottery so everyone can access the services their community deserves.”

Manchester Withington MP, Jeff Smith said:

“I well remember the painful decisions that our Council had to take after the coalition government brought in its austerity policies in 2011. So I joined other Manchester MPs in writing to the government asking to confirm a substantial uplift in funding for our Council. I’m pleased after 14 years of Tory austerity, Labour is putting money back into our local services in Manchester”