WARRINGTON Borough Council’s forthcoming budget will “draw a line in the sand” as it bids to plug a £130m funding shortfall over the next four years, with ALL services under review.
While a commercial portfolio helped generate £166m in profits in a bid to protect local services, it also put the council at risk to the tune of £1.9bn, which has snice beenreduced to £1.5bn.
The controlling Labour Group accepts “this is still too high, saying Exceptional Financial Spoort will be need from Government to restore financial stability.
The Labour Gropu today issued a statement saying that in February, the Cabinet of Warrington Borough Council and Scrutiny Committee will separately consider a report that outlines the proposed updated four-year budget strategy, the detailed revenue budget proposals, and the Council Tax for 2026/27.
Together with the Capital Strategy, Treasury Management Strategy and The Chief Finance Officer’s Section 25 report.
The Budget report forecasts a projected funding gap of over £130m across the next four years and acknowledges the unprecedented financial challenge. While many factors have contributed to the current position, the Current state of Local Government Finance being well publicised nationally, it is accepted that difficulties also stem from historic inadequate budgeting, an over-ambitious commercial approach, several years of unaudited accounts, and weak governance.
Cllr Denis Matthews – Cabinet Member for Finance, Assets and Investments – commented: ““Warrington is our town. It belongs to every resident.
“What happens here regarding housing, employment, transport, investment, and infrastructure matters to everyone.
“The reports published today detail that our difficulties stem from inadequate budget control, an over-ambitious commercial approach, and several years of unaudited accounts.
“We are victim to national issues, such as rising demands and costs for some services, particularly services that support our young people, families and older adults. But specific local issues have also played a significant role in driving our current budget position.
“Within the context of national funding cuts, our Council sought alternative sources of income to bridge funding gaps and thus avoid the more severe consequences of austerity for Warrington’s people.
“The commercial investment portfolio behind this ambition has generated around £166m in profits that have been used to support services accessed by our residents. However, at the same time this strategy was fuelled largely by borrowing from the Public Works Loan Board, exposing the council to the risk of around £1.9bn at its peak. In recent years this borrowing has been reduced significantly and now sits around £1.5bn – but plainly, this is still too high.
“When circumstances change, or a policy no longer serves us as was intended, it is only right, fair, and reasonable to accept that and establish a different path.
“The budget that will be presented to full council on the 2nd March will draw a line in the sand.
“It will acknowledge the realities of the commercial portfolio – those being both the income it has generated, but also the net position it occupies when current valuations are considered.
“The 2026/27 budget will present the Council’s Medium Term Financial Plan. It will acknowledge that Exceptional Financial Support will be needed to restore financial stability over the next four years, and that a programme of successful transformation is also required to establish this.
“Importantly, the result will be to set a path for a changed Warrington Borough Council. We will need to resize the organisation, and we will have to review all services. We must focus our resources on services that most improve and support residents’ lives. Our Council will develop new ways to involve, enable and empower our communities and neighbourhoods, to achieve the best outcomes possible for people who live, work and visit here.
“There will inevitably be bumps in the road along this journey, and some will feel strongly about both decisions of the past and the necessary choices that are needed to secure our town’s future.
“However, working together openly, and always in full possession of the facts, our Council will become a transformed partner that is focused on core council business. Well-run, modern and efficient that can demonstrate its ability to keep improving, and places people at the heart of everything it seeks to deliver.”
The council’s budget documents will be able to view online later today via the council website.
1 Comment
There seems to be not even a hint of an apology from the Labour group in relation to the massive losses incurred through their disastrous Commercial investment programme. Cllr Mathews mentions profits of c £166m; what he doesn’t refer to are LOSSES that exceed that figure and result in a major headache for the town for years and years to come as this problematic portfolio of c£1.5n billion has to be unwound. Government Envoys will be in place until beyond 2030, costing us further money. Around 6 years accounts remain unaudited. What an unholy mess !!
We were told at the time that all investment decisions were scrutinised in depth and the phrase “through the eye of a needle” was mentioned by one well known Councillor. How wrong he was !!