Council faces 'significant' financial challenge

Warrington Council is facing a "significant financial challenge", a cabinet

A council is facing a “significant financial challenge”, with a £18.7m overspend forecast this year, its cabinet has been told.

A report by Warrington Borough Council officers said the ability to achieve a balanced budget in the coming year was “increasingly difficult”.

Action was required to “address and change forecast overspends” this year which could include increasing fees and charges, it added.

Councillors are set to discuss the findings at a meeting later.

The council is facing a significant overspend in its families and wellbeing department, in particular the costs of caring for children in care.

The report to councillors said that a review of overspends, particularly in adults and children’s social care, was currently taking place.

After the first three months of its financial year, Warrington Council was forecasting a £12.6m overspend in September.

A number of actions to reduce spending have been suggested, including bringing forward savings signed off in the next financial year’s budget, increasing fees and charges, and a “sustained reduction” in agency staff costs.

Part of the public health contingency reserve is set to be used to reduce the overspend, the report said.

Councillors are being asked to note the overspend and possible further actions to address its financial issues at the meeting.

Last month, the local authority approved a council tax increase of just under 5%.