Council finance boss denies authority could 'go bust'

Norfolk County Council faces a budget shortfall of £44.7m in the financial year 2025/26

The deputy leader of a county council has denied the authority could "go bust" without help from the government.

Kay Mason Billig, who runs Norfolk County Council, told the BBC's Politics East programme that when it came to assessing the scale of the challenge facing her council on a scale of one to 10, "we hit 10 ages ago, we are just trying to make ends meet".

But Andrew Jamieson, deputy leader of the council, told BBC Radio Norfolk’s breakfast programme: “That is absolutely not the case.”

In a subsequent statement, Ms Mason Billig said: “There is no contradiction here. Andrew and I agree that we are facing the toughest financial challenges the council has ever faced."

Andrew Jamieson, deputy leader of Norfolk County Council, has denied the authority 'could be sent over the edge'

Ms Mason Billig made her initial comments on Sunday as figures obtained by the BBC showed that spending pressures on councils across the country were getting worse.

In Norfolk, the Conservative-led council is facing a budget shortfall of £44.7m for the financial year 2025-26.

So far, it has identified £33.55m of savings, with more than £11m still to find.

When asked by the Politics East programme if the council could go bust, Ms Mason Billig said: "It depends on what the government does; it’s in their hands, they could easily send us over the edge.”

But speaking to BBC Radio Norfolk on Monday, Mr Jamieson, who is the council's cabinet member for finance, denied the authority was at risk of collapse.

“We're taking preemptive measures,” he said. “These aren't the sort of measures to take when you go over the edge. It's the sort of measures you take in advance.”

Kay Mason Billig, leader of Norfolk County Council, said the authority is struggling to make ends meet

Figures obtained by the BBC showed that many councils faced a growing shortfall in their budgets.

The problem was most acute in county councils, which oversee the big spending departments of social care, children's services and highways.

To try and close its budget gap, Norfolk County Council has earmarked £16.5m of savings from its adult social care budget.

Its children’s services department is facing cuts of £7m.

The authority is also looking at increasing council tax with three possible options, which range from hikes of 3%, up to 5% or more than 5%.

Mr Jamieson was asked by BBC Radio Norfolk breakfast presenter, Chris Goreham, for his response to Ms Mason Billig’s remarks that the council “hit 10 ages ago”.

He said: “I would not say that we have a lot of wriggle room, but what we do have is a clear plan for making these pressures as clear as possible.

“But what we need the government to do in order to help us do that... is a multi-year settlement.”

In a statement issued after the interview, Mr Jamieson said the council was "holding our own" at the moment.

But he added: “If I were playing penny falls in the arcade at Hunstanton, we would not be one of the 16 councils that have stated publicly that they would go over the edge in the next 12 months.

"However, there is no doubt we are on the board.”

'Crisis in local government'

The government is preparing to outline its spending plans in its first budget on 30 October.

Chancellor of the exchequer, Rachel Reeves, will outline the government’s plans for raising or lowering taxes.

It will also include decisions on health, schools, police and other public services.

A government spokesperson said: "We have inherited a crisis in local government that is facing significant challenges, and there's no shying away from the scale.

"We are committed to fixing the foundations of local government. Working hand in hand with councils like Norfolk, we are moving towards multi-year funding settlements to provide long term stability and ensure the sector gets back on its feet."