Manchester City Council is set to use its reserves to meet rising cost pressures.
The council revealed it is facing a huge increase on services due to a sharp rise in population and is now running out of options for making savings.
It will use £12.8m from reserves, a £62m dividend from its share in Manchester Airport, and £12m from its commercial property portfolio in order to avoid deeper cuts to services.
For 2019/20, Manchester must make £14.7m in spending cuts – up from an original estimate of £9m after additional demand for services in 2018/19.
Council leader Sir Richard Leese said the authority was “fighting for survival”.
Last year, the council used £8.7m from reserves to help balance the books but since then it has faced an increase in demand in children’s services, adult social care, homelessness provision and new school building projects.
A report to councillors warned: “The council is relatively cash rich in the short term but is facing uncertainty and budget reductions in the future.”
The council joined other local authorities by calling for certainty from central government so it can plan for the next four years when the current Comprehensive Spending Review runs out in 2019/20.
The report said: “There is no certainty over either the quantum or distribution of local government funding after that date.”
