Oldham residents may be keeping a close eye on developments across Greater Manchester as Trafford council prepares to ask for financial assistance from the new Prime Minister, Andy Burnham. The authority, which has already imposed two consecutive years of steep council tax rises, says it is now looking to the government for help to stave off bankruptcy.

Trafford council has approved 7.49 per cent increases in council tax for both the 2025/26 and 2026/27 budgets. Despite these significant hikes, council leaders admit that the measures alone will not be enough to balance the books in the coming years. The authority has blamed its financial woes in part on the government's Fairer Funding Review, which has left it with a budget gap of £24 million over the next few years.

Council leader James Ross has confirmed that letters are ready to be sent to Andy Burnham, who was sworn in as Prime Minister just hours before the council meeting. "We are intending to get in touch with the new Prime Minister as soon as possible. We have got letters ready to go to do that," Councillor Ross said. He expressed hope for a positive dialogue, noting that local government seems important to the Prime Minister based on recent speeches.

The situation in Trafford shows the financial pressures facing many local authorities across Greater Manchester, including Oldham. Oldham council has also faced its own budget challenges in recent years, with residents seeing council tax rises and service cuts. Trafford's request for help points to the broader issue of inadequate funding from central government for local services.

Angela Rayner, the MP for Ashton-under-Lyne, has been reappointed as Secretary of State for Housing, Communities and Local Government. She previously held the role until September 2025 when she resigned after a stamp duty breach. Her department is responsible for council funding settlements.

Trafford's financial documents reveal an overspend of almost £2 million in the early part of this year compared to budget estimates, largely driven by costs in adults' and children's services. However, Councillor Ross claimed this was not unusual for early-year budget monitoring reports. The final budget for last year showed an underspend of £2.6 million, he said.

Further concerns have been raised about the high costs in the council's schools budgets. Despite a government pledge to wipe 90 per cent of debt accrued by councils up to the end of 2025/26, Trafford is still forecasting a deficit of around £20 million at the end of this financial year. Interest on the schools debt is currently costing the council £1.2 million a year.

Green councillor Sarah Lester expressed concern over the council's reliance on lobbying for increased funding. "There seems to be a heavy reliance on lobbying to get both increased funding on the temporary accommodation allowances and generally fairer funding allocation as well," she said.

Corporate director for place Richard Roe highlighted the difficulty of managing the high needs budget, noting that without further government support, the deficit would continue to grow. This is similar to challenges faced by other councils in the region, including Oldham, where demand for services often outpaces funding.

For Oldham readers, the situation in Trafford shows ongoing uncertainties about local government funding. As councils across Greater Manchester struggle to balance their budgets, residents may be wondering if similar measures could be on the horizon here. The outcome of Trafford's appeal to the Prime Minister could set a precedent for how the government supports struggling authorities in the future.

As the new government settles in, Oldham residents will be watching to see if Angela Rayner and Andy Burnham can deliver a fairer funding deal for all councils in the region. Local services, from schools to social care, need to remain sustainable without overburdening taxpayers.