The devastating impact of COVID-19 on the Manchester economy has just been laid bare – with research revealing the pandemic will cost the city £732m by the end of 2020/21 alone.
According to GMCA, the total net deficit facing local government finance is £368m when taking grants and reserves into account.
The ten Greater Manchester councils are estimating additional costs of £225m – with £71m spent on increased adult social care, Personal Protective Equipment (PPE) and reduction in charging income (day support).
An extra £18m will go towards children’s social care, £13m on education, £33m on housing, highways and public health.
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Council finances have also suffered due to a lower amount of commercial income, business rates, council tax, and sales, fees and charges during the pandemic.
Mayor of Greater Manchester, Andy Burnham, said: “The COVID crisis has landed heavily on our councils after a decade of severe cuts. Even so, they have been working wonders in recent weeks to support people and communities through this and now need and deserve the Government’s direct help.
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“Councils will be crucial to the recovery from COVID and getting communities back on their feet, but won’t be able to play that role with a black hole in their finances.
“This analysis lays bare the scale of the funding challenge facing Greater Manchester’s councils. Without urgent support, this funding crisis will engulf local government and endanger the vital services that councils provide to the community, particularly for the most vulnerable.
“We know that this virus has hit the poorest communities hardest. We have also heard the Government’s promises to “level up” the country. The time has come for it to make good on those promises and give Greater Manchester and its councils the resources they need to lead recovery and build back better.”
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David Molyneux, Leader of Wigan Council and Portfolio Lead for Resources added: “Local government finances have been under pressure for many years, and what this health pandemic has done is exposed how our public services have been stripped to their bare bones.
“We’ve risen to the challenge to help those who need it, but it’s been at a massive expense. The balance sheet of expenditure and losses shows the stark financial toll we’re having to bear.”
Social distancing at Manchester Piccadilly Station / Network Rail
Transport for Greater Manchester (TfGM) has also been severely impacted by the COVID crisis and subsequent lack of passengers.
According to GMCA, grants from theDepartment for Transport (DfT) of £24.97m have helped to “provide a welcome relief” but still leave TfGM with a £1.8m deficit.
Without further government support, GMCA have warned there will be further deficits of £30-£40m for the rest of the financial year (Aug 2020-Mar 2021).
Discussions between GMCA and DfT are ongoing.
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Major tram disruption and city centre stop closed after man ‘injured on tracks’
Daisy Jackson
A city centre tram stop has been closed and a man rushed to hospital with possible life-changing injuries today.
Trams are currently facing severe disruption due to an ongoing police incident at the Market Street Metrolink stop.
Emergency service are responding to reports of a man injured on the tracks in Manchester city centre.
The man, who is in his 50s, has been taken to hospital with injuries that may be life-changing.
A huge scene remains in place around the tram stop, and passengers have been advised that services on the Bury line will operate from Manchester Victoria only, while the Ashton line services will stop at Piccadilly.
There’ll be no services between Piccadilly and Victoria until further notice.
In a statement, a GMP spokesperson said: “Emergency services are currently responding to an incident on Market Street Metrolink stop in Manchester City Centre after reports of man injured on the tracks.
“One man, aged in his 50s, has been taken to hospital where he is currently being treated for possibly life-changing injuries.
“No arrests have been made in relation to this incident, and a scene remains in place whilst enquiries continue.”
Kids can now travel on Greater Manchester buses for FREE all summer long
Emily Sergeant
Young people across Greater Manchester will benefit from unlimited free bus travel this summer.
As part of the Government’s Great British Summer Savings campaign – which was announced back in May – Transport for Greater Manchester (TfGM) has revealed that all children aged five to 15 can travel for free in England, including on Bee Network bus services, during the school summer holidays throughout August.
Not only that, but 16-year-olds will be able to activate their ‘Our Pass’ one month earlier (from 1 August instead of 1 September), giving them an extra month of free bus and cheaper tram travel.
The move means that all young people in Greater Manchester will be entitled to free bus travel for the whole month.
Children under five already get to travel for free on the Bee Network all year round.
From 1-31 August, children aged 5-15 can travel FREE on all #BeeNetwork buses across Greater Manchester as part of the government’s Great British Savings scheme.
And if you’re turning 16? You can activate your @OurPassGM a month early from 1 August, unlocking free bus travel and… pic.twitter.com/BM9vIEnNfH
The Great British Summer Savings scheme has introduced a temporary reduced rate of VAT – down from 20% to 5% – on things like travel, children’s meals in restaurants, and family leisure activities over the summer period.
The Government says the aim of the initiative is to make family days out more affordable, while also supporting businesses through increased footfall.
No registration or sign-up is required to benefit from the Summer Savings scheme on the Bee Network, TfGM confirmed, with anyone aged between five and 15 instructed to just ask the driver for a free ticket as they board the bus.
“We’re pleased to be taking part in the Greater British Summer Savings scheme which will mean free bus travel on the Bee Network for everyone aged five to 15 in August,” commented Fran Wilkinson, who is the Customer and Growth Director at TfGM.
“This will help make days out more affordable for families this summer.
“The Bee Network is all about making it easier and more affordable to get around Greater Manchester and this national scheme will help us do just that.”