Council’s forecasted overspend “deteriorated slightly”

1

THE financial position of cash-strapped Warrington Borough Council has “deteriorated slightly” with a forecast overspend of £20.904m, a councillor told Cabinet members on Monday night.

Cllr. Denis Matthews, the Cabinet member for Finance, Assets and Investments, updated colleagues on the 2024/5 Budget Forecast position at Period 8 which accounts for spend to the end of November 2024.

He said: “The updated forecast at Period 8 indicates a deterioration of £1.042m across the Council, therefore the revised forecast is a a forecast overspend of £20.904m.”
He explained that the council is forecast to have revenue reserves of £110.729m, of which £42.789m “are available to fund revenue pressures.”
He added: “If the Council funds the forecasted overspend from these reserves, then it will only have £21.885m reserves.”
Urging councillors to recommend, he said: “The Council is forecasting an overspend of £20.904m.
“It is important for Members to have a detailed view of the current budget position and pressure to enable them to play a full part in the decision making process and the implications that brings, to ensure a balanced budget can be reported at the end of the year.”
The Cabinet agreed to note the forecast out turn as at Period 8 of £20.904m overspend. And to note possible further mitigating actions available to address current financial challenge,
This was unanimously supported by Cabinet.
The authority has already slapped a ban on all but essential travel and recruitment to try and reduce the overspend.
Council leader Cllr Hans Mundry pointed out that many councillors nationally found themselves in “financial difficulties”. He said Warrington is “the fifth or sixth lowest funded Council and we have had 14 years of austerity.”

But Warrington has avoided being served with a Section 114 notice, nor was it one of 20 councils who have sought “exceptional funding from government.”
Section 114 notices are issued when a local authority is effectively bankrupt and prevent new spending.
Back in November, councillors were warned that if measures were not introduced or followed to make savings, the council would need to consider issuing a notice.
On Monday night, he stated that there has been a “£23 million investment surplus” in Warrington but “moving forward we are changing the way we do things.”
Cllr Mundry went on to add that: “Warrington can hold its head high” for “finding extra resources and delivering services for the people of Warrington.”


1 Comments
Share.

About Author

1 Comment

Leave A Comment