'LIGHT AT THE END OF THE TUNNEL...!

GREATER MANCHESTER COUNCILS SET FOR £260M FUNDING BOOST

- JOSEPH TIMAN

GREATER Manchester's councils will be £260m better off next year - but they will have to raise council tax to get all the extra cash.

Town halls across the city region are in store for a funding boost, after the government announced a £69bn package for local authorities across the country yesterday. In Greater Manchester, councils will see their spending power increase by around £260m.

However, around £100m of that would come from an increase in council tax, according to the government's figures. The M.E.N. understands that the calculation assumes town halls will raise council tax by the maximum five per cent permitted.

The government's sums assumes Manchester council will raise an extra £19.2m in council tax next year, some of which would be raised from new homes built in the city. If the town hall raises council tax by the full 5pc, it would have £62.5m extra to spend in total. This methodology was also used under the Conservative government. In recent years, Labour councils in Greater Manchester have said they were left with no choice but to increase council tax by the maximum amount because of the way funding was calculated.