Council facing £36m budget hole looks to cut jobs

Council leader Arooj Shah said the local authority was under "increased pressure"

A council has asked staff to consider voluntary redundancies to help plug a predicted £36m hole in the budget.

The move is in response to Oldham Council's spending, which has "increased massively" this year due to pressures in adult and children's social care and temporary accommodation.

The local authority is predicting a £25m overspend this year, on top of an existing £11m budget gap from last year, based on future projections.

A council spokesperson said they were already working on reducing spending and hoped to reduce the figure.

'We've got no money'

Council leader Arooj Shah said: "We're hopeful for a new settlement but we've got to be realistic. We've got a job to do.

"We're looking at all options and speaking to unions in a collaborative way.

"Our focus is on protecting the services that matter and we will be considering our ability to continue doing that when making decisions about voluntary redundancies."

The council boss said the local authority was under "increased pressure that is not unique to Oldham" as demand for social care and temporary housing continued to spiral in the cost of living crisis.

The council has also been hit by rising prices of children's home placements and care for the elderly, which are largely contracted out to private firms.

Growing numbers of people in need of emergency housing as a result of homelessness has also resulted in significant spending on hotels and temporary accommodation.

But Ms Shah said pressures have hit the council particularly hard because of the "unfair" funding system, which leaves councils reliant on council tax increases.

Because of high levels of unemployment and social need in Oldham and a higher proportion of residents living in houses with lower council tax bands, the borough struggles to raise its level of income.

Meanwhile local deprivation results in a greater need for council services.

Ms Shah said that previous secretary of states had advised councils to dip into their "rainy day funds" or financial reserves to balance the books.

"But it's not just rained in Oldham," she said.

"It's poured, it's stormed, it's hailed. Which has meant that we've got no money."

A spokesperson from the Department for Levelling Up, Housing and Communities said: "This government is committed to fixing the foundations of local government and we will work closely with local government to do so.

"To get councils back on their feet, we will work closely with them to provide more stability through multi-year funding settlements, ending competitive bidding for pots of money and reforming the local audit system."