Leading county councillor warns of 'challenging' financial position ahead of budget
Cuts will be needed to balance the books at Northumberland County Council, a senior cabinet member has warned.
The local authority is facing significant cost pressures due to inflation and rising demand for services.
The council will receive a £3million uplift from central Government, while council tax is expected to rise by the maximum level allowed.
However, cabinet member for finance Coun Nick Oliver warned that this would not be enough to cover the gap.
Speaking at full council meeting, Coun Oliver said: “Things are challenging. We have had two rounds of what I call blood on the carpet budget meetings where executive directors and portfolio holders look at what we can do to deliver services more efficiently.
“To give you some context, we’re getting about £3million more in Government funding this year and that won’t touch the sides. We have cost pressures, inflationary pressures and demand pressures that will likely be in excess of £45million.
“Even with the requirement to raise council tax by the maximum of 5%, that will still be less than half of what we need. We have been working really hard, we have found a lot of efficiencies but we still have a significant gap.
“There will be more meetings to try and plug that gap, which we are determined to do. It’s not a pretty picture.”
In September, the council was forecasting a £7.9million overspend by the end of the financial year. Social care for adults and children were both particular drivers of overspends, with increasing demand and increasingly complex individual cases.
The Government’s recent budget did look to reduce some pressure on local authorities. This included the write off of 90% of historic SEND deficits accrued by councils up to 2025/26.
However, the Local Government Association warned that with no overall funding increase for local government, councils would “continue to struggle to meet demand and provide services to our communities”.
Coun Eamonn O’Brien, chair of the Local Government Association, which represents councils, said: “Government recognises that councils are central to achieving good growth and rewiring the state. These ambitions cannot be achieved if council finances remain fragile and reliant on emergency bailoutagreements.
“The full value of local government will only be unleashed if both local and strategic authorities are empowered and financially sustainable.”