CHESHIRE West and Chester Council must make savings of approximately £50m over the next four years, the cabinet member for finance has warned.
Cllr David Armstrong (pictured) told a cabinet meeting that a reduction in central government funding will leave the authority facing “massive financial challenges”.
Setting out the financial plan for the next four years, he explained that the Revenue Support Grant (RSG) is expected to reduce from £57.6m in 2014/15 to nil by 2020.
A previous shortfall estimate of £35m over the next four years had been revised to £47.5m following further examination of the authority’s finances.
He warned that the figure may rise following the Government’s Autumn Spending Review.
Cllr Armstrong told the meeting: “The loss of the RSG represents a huge drop in what this council will be receiving.
“It means we need to reduce spending by approximately £50m over four years. That is a staggering amount that has been taken away from this council.
“Over the same period business rates will be increased by £7.2m which will slightly mitigate the reduction in funding.
“There will also be a small increase in Council Tax receipts due to an increase in housing, but not enough to make a significant difference.
“Taking all of this into account, we will endeavour to balance the books.”
In a report to cabinet, Cllr Armstrong said a strategy to address the shortfall must be guided by careful planning to explore “a variety of opportunities for smarter, more efficient working”.
Members unanimously approved the report’s recommendations, which included developing a budget package for the next four years and carrying out public consultation on the proposals between October and December this year.
Feedback from the consultation will inform an amended council plan and budget package to be considered by members in February.
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