The council could be forced to make millions of pounds of budget cuts amid "unprecedented" economic uncertainty.

Local authority chiefs have reported a potential budget deficit of £29m for the 2023/2024 year with inflation and cost of living increases mainly to blame.

Previous estimates for the council’s Medium Term Financial Strategy had predicted a £14m gap, but factors including the war in Ukraine and supply chain disruptions have prompted a "refresh" of the budget, more than doubling that initial forecast.

The council says the effect of increased costs have been further exacerbated by limited reserves following the pandemic.

Council leader, Cllr Eamonn O’Brien, said: “We know that most people are paying more and getting less as every year our resources are increasingly stretched beyond our control.

“More than £100m of government grants have been withdrawn in the last 10 years, and there is increasing demand for services – particularly in adults’ and children’s social care, which together make up two-thirds of our budget.

“We know that people and businesses need support, and we’ve made it our strategy to protect them as much as possible.

"In previous years we’ve managed by being prudent and broadly managing cuts.

“But inflation is hitting the council more than before and three quarters of the savings we need to find are due to rising costs.

“The latest budget forecasts are that we will need to make cuts of £29m in 2023/24.

"This has rapidly increased from £14m due to the unprecedented uncertainty with the economy.

“Like everyone else we’re being hit by volatile energy prices and the cost-of-living crisis.”

The local authority says the full implications for the council’s budget will not be known until the House of Commons approves the next Local Government Settlement, which determines how much annual funding councils receive from central government.

Council leaders aim to save cash by improving efficiency and sustainability while increasing commercial revenue.

This could mean a reduction of public services run by the council.

The largest saving target is in children’s services with £4.9m earmarked for reviews of high-cost social care placements and the provision of more specialist housing and foster carers in the borough to save costs.

A further £6.5m could be saved by increasing income generation including council tax, business rates and an uplift in fees and charges.

There are also savings of £1.1m earmarked in adult services to remodel sheltered housing where support is currently duplicated and cease home visits where it is solely to remind customers to take medication.

In addition, another £1m could be raised through an options appraisal of Bury Art Museum and workforce cost savings.

The updated budget will be approved by the council's cabinet at a meeting on Wednesday, October 19 as well as the commencement of a public consultation which will consult residents on cost saving measures.

The cabinet has until February next year to make the final budget proposals.

Cllr Richard Gold, cabinet member for finance and communities at the council, added: “We are awaiting the announcement of how much the government will be providing in grants, the financial settlement, which usually takes place in December.

“This is an opportunity to either improve the situation and recognise that inflation is hitting our financial position, or it could make our forecast the grim reality it is currently looking like.

“We are listening to residents’ and we remain ambitious for the future of our borough but there are lots of risk.

"If it wasn’t for inflation we wouldn’t be proposing this difficult budget.”