FACED with a funding gap of nearly £90m over the next four years, Warrington Borough Council is set to seek Government permission to increase Council Tax by more than the 5% limit and apply for Exceptional Financial Support (EFS).
The Labour led council has acknowledged the unprecedented financial challenge and next Monday (Dec 1) the cabinet will consider a report that updates the Council’s Medium-Term Financial Plan (MTFP) and issues affecting the Council’s current financial position for 2026/27 and future years.
The report forecasts a projected funding gap of nearly £90m across the next four years and seeks endorsement of the decision to apply to the Government for Exceptional Financial Support (EFS) for both a capitalisation directive together with permission to increase Council Tax above the 5% limit.
Cllr Denis Matthews – Cabinet Member for Finance, Assets and Investments, issued a statement this morning saying: “It is vital that we are honest with our residents as to the scale of the financial challenge that faces our Council. However, Warrington is not alone in this position, as a recent LGA survey highlighted that 80% of councils are expected to need Exceptional Financial Support within the next three years.
“Ensuring the financial stability of the Council isn’t just a nice to have, but an essential foundation for all successful service delivery.
“EFS for WBC should be seen as a commitment to invest in our people and services to deliver a transformed and financially robust council. One that is fit for the challenges and opportunities of tomorrow, and the generations of us to come.
“Labour Councillors understand all too well the continuing cost of living pressures being experienced by our residents and will ensure appropriate support is put in place for vulnerable households with regards to the Council tax reduction scheme and discretionary discount policy for those households in hardship. The burden of changes should not fall unduly on the shoulders of those least able to support them, and our commitment to protect our most vulnerable adults and children will always remain.
“WBC must renew its social contract with every resident of our town. That includes being clear about what the council can and will provide within the funding that is available to us, living within our means, and ensuring that value for money is always delivered.
“Warrington Labour Group is committed to the transformation of WBC into a body that is focused on core council business. This must be achieved through sound financial management and a commitment to place people at the heart of everything we seek to deliver.”
The council’s level of debt, which last year peaked at nearly £2 billion, resulted in Government envoys being sent in to oversee the council’s financial dealings following a damning inpsection report.
