Manchester

Manchester Airport dividends reduce council job losses and service cuts

Sir Richard Leese
Image caption Sir Richard Leese said the last few years had been "challenging"

Job losses and service cuts will not be as severe as first feared, thanks to a council's share in Manchester Airport.

In October, Manchester City Council said it needed to save between £40m and £75m over the next three years.

But, thanks to dividends of £15m from the Manchester Airport Group, that savings goal has now been cut to £30m.

The move will also mean fewer cuts to services for children, roads, schools and vulnerable adults. However, council tax will rise over the next two years.

An initial job losses figure of 160 has been reduced to 77 based on the new proposals, said a council spokesman.

Since the city council's initial proposals, the government is allowing local authorities to increase council tax by an extra 3% in the next two years to pay for social care.

The council proposes to use the full increase to raise council tax by a total of 4.99% in 2017-18 and 2018-/19 and 1.99% in 2019-20 to raise a further £17.3m.

More than 1,700 public responses to the council's initial consultation have now been shaped into firmer proposals.

This further consultation will run until 10 February before a full council meeting on 3 March.

Sir Richard Leese, leader of Manchester City Council, said the last few years had been "challenging".

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