Trafford Council is set to receive an interest-free loan from the Greater Manchester Combined Authority (GMCA) to address a multi-million-pound budget gap.
The financially struggling local authority has seen its deficit increased by £24m under the Government’s fair funding review.
While it was awarded £12.65m in exceptional financial support by the Government in February, it still needs support from the GMCA’s new loan scheme.
The initiative to make interest free loans available to councils in the combined authority’s area was launched last Friday (27 March). Trafford Council is the only authority to date to qualify.
Mayor of Greater Manchester Andy Burnham told the Manchester Evening News that the policy showed the city region ‘approaches politics together, place first, not party first’.
A spokesperson for Trafford Council said: 'We are grateful for the help from our Greater Manchester neighbours to help ease the financial burden we face and it underlines why maintaining a good relationship with other councils in the city region is so important.
'We have found ourselves in this difficult financial situation despite having robust financial governance, something recognised by independent financial experts.
'We are also continuing our discussions with Government officials which have the potential for further support for service transformation in the future.'
