Council facing bankruptcy proposes £14m savings

Mayor Chris Cooke said "tough choices" had to be made

A council that approved plans to sell off assets in an effort to avoid bankruptcy has announced proposals to save about £14m.

Middlesbrough Council approved the sell-off in November after an overspend of more than £8.5m was forecast for the second quarter of the financial year.

A council report published on Tuesday said the new plans, which are yet to be approved, would still leave a £6.27m shortfall.

Labour mayor Chris Cooke said the authority would "have to take tough choices in the short term in order to save our services in the long term".

The authority's executive members are being asked to back the measures at a meeting next week.

It includes the loss of about 75 full-time equivalent jobs.

Mr Cooke said it was looking at cutting between 50 and 100 posts but some could be saved by converting agency workers into permanent staff, which would cost less.

The council has already considered selling off assets

Plans under consideration include raising council tax by 4.99%, introducing fortnightly waste collections and charging for green waste collections.

It could also see changes to children's and adult social care, and the possible closure of the Captain Cook Birthplace Museum.

• BBC Sounds: New proposals for cuts to Middlesbrough Council

The authority said it was "battling to balance its books" with reduced government funding, increased social care demand, and rising costs.

It also had "critically low levels" of reserves and a greater demand for adult and children's social care than other authorities, it added.

'Just going backwards'

Mr Cooke said lighting, community safety and street cleaning services would not be cut.

"If we just endlessly cut at those services when residents already don't feel safe and don't feel that the council is providing some of those services enough, then we're just going backwards," he said.

The council's financial settlement from the government for next year is due to be announced later this month.

The authority said it would consider applying for exceptional financial support if needed.

If it cannot balance its books before February it could be forced to issue a Section 114 notice, which effectively declares bankruptcy and means it can only spend money on the services it is required to provide by law.

Other councils to have issued such notices include Croydon, Birmingham, Nottingham and Woking.

Mr Cooke said the proposals provided some assurance that there was "light at the end of the tunnel and we just need to get through this next process".