Council approves £1 billion 2026/27 budget to improve Manchester

Manchester City Council has today (Friday 27 February) set its budget for 2026/27, outlining how it will make a positive difference to the city and its residents.

After 14 years of Government funding cuts and unfunded pressures from 2010 to 2024, which saw Manchester among the hardest hit places in the country, the Council’s financial position has improved due to fairer funding from the current Government which reflects the city’s needs.

For the first time this year, its revenue budget exceeds £1bn (£1.045bn.)

This leaves the Council able to invest more in supporting residents’ priorities and begin to build back some things which were affected by austerity.

As well as continuing to support those most in-need in our city -whether they’re struggling with the cost-of-living crisis, facing homelessness, or children and adults needing care, protection or extra help – the budget also makes a series of investments in measures which will make visible improvements across the city.

Headline additional investment proposals include:

• £5.13 million to significantly enhance street cleaning services across the city (£2.145 million extra in 2026/27, rising to an annual budget increase of £5.13m by 2028/29) taking the overall street cleaning budget for next year to £10.6 million)
• Plus almost £1 million for measures to further crack down on flytipping and littering and improve waste collection and removal (£774,000 in 2026/27 rising to £1 million a year by 2028/29)
• More than £1.7m to boost the maintenance of public spaces, especially parks and green spaces
• One-off investments of £1.1 million in 2026/27 to improve road, pavement and path surfaces and £500,000 to increase pavement and footpath gritting in local centres, bringing the total highways budget to £20.7 million.
• A £550,000 a year budget increase to improve drainage and gully cleaning to help reduce flooding.
• Expanding plans to get Manchester people moving with £1.47 million on a range of schemes to improve access to, and involvement in, sports and physical activity for Manchester people such as plans to expand free swimming for under 16s and over 60s.
• Investment is also taking place to support longer library opening – such as Sunday opening in eight libraries around the city – which had ended in 2011.  More community events will also be backed.

Meanwhile, capital funding will continue to be used to build the council, social and genuinely affordable homes the city needs and invest in local high streets and district centres across the city. The Council is on course to meet our goal of at least 10,000 council, social and genuinely affordable homes being built by 2032. Last year more such homes, were built than at any time since the mid-90s.

Council Leader Cllr Bev Craig said: “Manchester is an incredible city which we are all proud to call home. We’re seeing record levels of investment in our neighbourhoods and communities, more council and social homes built than for decades and stronger economic growth than anywhere in the UK.

“But we believe that Manchester can be even better and that’s what we’re determined that this budget will help achieve – a city where everyone can have a good home, a good job and a good life in an well cared for, invested-in neighbourhood.

“That’s exactly where the extra funding available to us in this budget is being focused.”

Councillor Rabnawaz Akbar, Executive Member for Finance, said: “This is a budget that is investing in what residents have told us matters most to them. The improved funding gives the city space not just to protect essential services but to strengthen them and bring back elements of local life that were lost during austerity. People will see an improvement in their neighbourhoods and real improvements in their everyday lives.

“While we are still dealing with the legacies of austerity, which means our finances still require careful management, this year is a big step forward. “£1 billion is a lot of money which needs to support a wide range of services. What’s important is that we have a clear vision for the city as a great place to live with opportunities for everyone.”

Note to Editors 

The net budget of £1.045bn breaks down as :

Adult Social Care – £294.6m

Children’s Services – £202.8m

Neighbourhood Services – £149.6m

Corporate Services – £114.8m

Growth and Development – £10.1m

Corporate Budgets – £214.8m