Council leader: we won't go bankrupt on my watch

Leader Jane Ashworth said the government had to provide councils with a "fair funding formula."

The leader of a council has insisted it will not be declared effectively bankrupt while she is in charge.

Stoke-on-Trent City Council has warned that without £44.7m in government support it faced closing numerous services in order to balance the books.

It was "highly unlikely" the government would decide not to help councils in financial difficulty, said Labour leader Jane Ashworth.

The authority is planning to increase council tax by 4.99%, and council housing rent is set to rise by 7.7%.

Under its budget proposals, the council also said it would be forced to introduce year-round charges for brown bin collections, reduce staff numbers and end some cultural grants.

But even these cuts would leave it in a vulnerable state financially, it said in its plans.

"Everyday has been budget day since we took over," Ms Ashworth told BBC Radio Stoke.

"We have a financial plan that will get us out of the mess. The sooner we get a government which has a fair funding formula and will provide the money to cities like ours that need it the most, then the better."

She took over as leader in May 2023, when Labour won an overall majority on the council from the previous minority Conservative administration.

Asked if the council would be declared effectively bankrupt while she was in charge, she said: "No, not unless something unforeseen happens, which is obviously true for everybody really."

Three-year recovery

Stabilising the council's financial position and recovering was going to take about three years, she said.

"That depends on inflation, and it depends on whether or not central government gets its act together and stops cutting the amount of money we have got in our city."

The Department for Levelling Up, Housing and Communities (DLUHC) said the government was ready to talk to any councils concerned about their financial position.

Bosses at the city council currently estimate a funding gap of about £14m for the 2024-25 financial year, which they said was directly linked to increasing costs in children’s social care.

One in 56 of all children in Stoke-on-Trent were in the council's care - a total of 1,150 - with 3,500 vulnerable adults also needing support, the authority said.

It hoped an additional £44.7m from the government for this financial year and the next would cover its budget shortfall.

Councils were ultimately responsible for their own finances, a DLUHC spokesperson said.

“We recognise they are facing challenges and that is why we have announced a £64bn funding package to ensure they can continue making a difference, alongside our combined efforts to level up," they added.