Oldham financial blackhole branded a “horror show” by Liberal Democrats

Oldham Liberal Democrat Leader councillor Howard Sykes MBE has described Oldham Council’s financial position as a “horror show” following reports of a predicted £25 million overspend facing the current Labour administration.  The total budget gap is predicted to be in the region of £36 million.

Oldham Council is now asking staff to consider voluntary redundancy. 

Councillor Sykes said, “The situation in Oldham is a complete horror show.  To be in the position where our staff are being asked to consider voluntary redundancy should be a source of deep shame for this administration.  This piecemeal approach will have a massive impact on services the public regard as important.  Weeds, parks and green spaces are just three examples of things that have deteriorated recently and will only get worse.”

Oldham Council’s budget reserves have plummeted from roughly £110 million in 2020 to an estimated £41 million by 2025.  A reduction of 62% in just four financial years.

Councillor Sykes said, “Failure to achieve in-year savings just makes the situation worse.  The Liberal Democrats have continually warned against the current direction of travel and the over reliance on reserves.”

Commenting on efforts to lobby the new Labour government for support for councils, Sykes criticised Oldham Labour for refusing to stand up to their colleagues in government.  “We’ve had years of Oldham Labour politicians demanding action from government, but now it’s the red team in Downing Street, they’ve changed their tune.  The report for Cabinet next Monday 19 August clearly rules out action by the government.  This is Labour covering for their friends in government and it is not something we should accept.”

Councillor Sykes said, “More councils have declared effective bankruptcy in the years since the pandemic than in the 20 years before it.  So, we’re at the end of the road when it comes to local government finance and we need a complete reset.  Fair funding means reversing the trend where governments cut more and more funding from councils and pass the burden onto residents through council tax.

“We need a fair deal that reflects the responsibilities councils have and gives the funding for the job to be done.  It’s Labour in government now and there is no ducking this.  They need to get on with it.”