Manchester council leader warns local authorities could "go under" if more spending cuts imposed
Manchester City Council leader Bev Craig has issued the warning as senior ministers signal potential spending cuts
There are warnings local authorities across Greater Manchester could "go under" this winter if the government makes further cuts to their finances.
Councils across the country are already finding themselves under financial pressure due to rising costs, including the price of gas and electricity.
Now there are signals from ministers that they are considering more cuts to public spending to shore up the economy after the Chancellor's mini-budget last month.
Levelling Up Secretary Simon Clarke suggested over the weekend there could be significant cuts to public spending.
Economists have also warned the government could be forced to commit to cuts to shore up the markets after last week's mini-budget.
It's as Manchester City Council has already warned earlier this year that without extra Government support it is on course to overspend this financial year by around £20m.
Since its budget was set, there have been several significant changes that have affected the Council’s financial position including soaring inflation and global supply shocks.
The council has also lost income from things such as car parking, as people tighten their belts.
"What we're seeing at the minute is absolutely shameful."
Manchester City Council Leader Bev Craig told us: "I'm normally a mild-mannered person when it comes to my views on things that are happening externally but what we're seeing at the minute is absolutely shameful.
"We didn't need to be in this situation. We've talked about a global recession for some time but what we've seen over the last six days has been an intentional driving into the wall and the government needs to urgently bring forward the fiscal event they're planning.
"To be in a situation where you see the IMF (International Monetary Fund) or the Bank of England live tweeting that they're intervening to avoid financial collapse is an absolute shame on government policy.
"We know in a city like Manchester, our residents have already been hit the hardest and any further recession puts them at risk.
"We'll be bringing forward our own measures around what we can do as a city but the government needs to intervene."
Councillor Craig added: "Any further cuts to public expenditure will damage the economy even more and what we need now is a support package to help grow the economy, not to damage what we already have.
"Since 2010, Manchester has lost over £420 million per year from our budgets.
"When I speak to leaders across the country, we are already in a precarious situation. You cannot be in a modern developed economy where your public services simply don't have enough money to function.
"That's where we're heading if they make further cuts."