Council projects £4m shortfall 'if no action taken'

Fenland District Council might not be able to avoid council tax increases, but the authority should be able to become "more efficient", says the leader

A council has sounded a warning that it faces a shortfall of more than £4m by 2029-30 if no action is taken.

A report by Fenland District Council said its latest projected deficit was "significantly higher" than previous forecasts.

Increased costs of £536,000 for this year included spending on legal fees relating to the Wisbech incinerator and additional costs in the planning department because of difficulties with staff recruitment and retention.

Conservative council leader Chris Boden said he was "certain" the predicted deficit would be reduced because the council would take action on "specific issues".

"Our trading accounts continue to be a drain upon the authority," he told a cabinet meeting, according to the Local Democracy Reporting Service.

"We continue to have the problem of the cost of the internal drainage board levies. We have the issue of homelessness in particular, which is a very significant drain on our resources, and it continues to be significantly above the budgeted figure for the current year."

Internal drainage boards are public bodies managing water levels in Fenland, much of which is below sea level.

'Unpalatable changes'

The council has forecast a 2025-26 budget gap of £2.6m on net expenditure of £19m, based on there being no increase in council tax.

Boden said there was a lot of uncertainty about the finances, and the council hoped to know by the end of the week how much money it would receive from central government.

He said: "We have quite a number of areas where we will have to take action – where we know we are going to need to take or are currently planning to take [action]."

It was also undertaking "a programme of transformation" with a view to achieving "the same outcomes we currently have, but doing it in a more efficient and effective way".

He added it was "quite possibly not realistic" to assume the authority would not raise council tax over the next five years as it might find itself having to "make the choice between unpalatable changes or increasing council tax".