Stockport and Trafford councils have missed out on vital government cash again this year – despite Stockport having the most deprived part of Greater Manchester.

The two councils say they have been overlooked in the Recovery Grant, money given to 'areas with greater need and demand for services' which are 'less ability to raise income locally.'

They missed out on a slice of the pot last year too, which dished out £600m to councils around the country.

The decision has sparked dismay in Stockport town hall after recent data revealed the borough has the most deprived part of Greater Manchester in the area around Lancashire Hill, a social housing estate on the edge of Stockport town centre.

Lib Dem Councillor Jilly Julian, deputy leader of Stockport council and cabinet member for finance and resources, said Stockport has been 'left behind' with the government's latest finance settlement.

"It's simply not enough to meet the spiralling costs of delivering the critical services that our residents depend upon," she said.

"We were already underfunded to the tune of £63m by FY29/30. The provisional settlement increases that funding shortfall by a further £12m.

"When government talk about 'making funding available', they should be honest and say that 66 per cent will be from assumed council tax revenue by the end of the settlement period – an assumption that forces councils to apply maximum increases each year to get to that amount."

Despite the concerns, Cllr Julian said she is 'confident that Stockport won't need to request exceptional financial support any time soon.'

Hazel Grove MP Lisa Smart raised the issue of Stockport missing out on the Recovery Grant in Parliament in December.

She said at the time: "In my local area at first glance Stockport appears to be one of those areas that's worse off under this funding settlement, despite containing the most deprived part of Greater Manchester.

"We missed out on the Recovery Grant by 0.01 per cent and that's what the initial indication is."

Cllr Tom Ross, leader of Trafford Council, said: "The Recovery Grant was introduced by the government last year in recognition of the financial pressures faced by councils across the country.

"This recognition was a positive step, however it's very disappointing that Trafford was one of three metropolitan boroughs in the country not to qualify for support.

"We continue to lobby the government to consider wider measures and financial challenges when considering financial support for councils."

Earlier this month, Trafford revealed it had no choice but to seek exceptional financial support from the government in the form of a £20m loan.

The Ministry of Housing, Communities and Local Government defended its work.

A government spokesperson said: "The Recovery Grant was targeted at the most deprived places that suffered the most from historic funding cuts which we inherited.

"We are making good on long overdue promises to fundamentally update the way we fund councils, and both Stockport and Trafford councils will see an increase in their funding this year."

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