A Greater Manchester borough's biggest employer announces 'recruitment freeze' as 'urgent' warning issued over finances

Oldham Council has hit a snag with a £23m financial shortfall, leading to a recruitment freeze, affecting all roles except critical ones. The budget forecast worsened from £20m to £23m in just two months, prompting concerns about applying for Exceptional Financial Support from the government to avoid bankruptcy under Section 114. Finance boss Councillor Abdul Jabbar highlighted that rising demand for services like adult social care and children’s services, coupled with increasing external costs, has strained the council’s finances. The largest overspend is in adult social care, projected at over £12m. Although the council is tightening financial controls and anticipating government reforms for better funding, there are serious worries about their financial sustainability. With only £24m remaining in reserves and a struggle to implement budget cuts, Oldham faces a challenging road ahead unless additional support comes through.

Read the full article at Manchester Evening News