Bristol City Council could face £32m shortfall as costs rise

Bristol City Council is "failing to keep pace with local need", according to a new report

A council could face a £32m budget shortfall which could rise to £81m in a worst-case scenario, a report will say.

The report to Bristol City Council warns that funding is "failing to keep pace with local need".

The authority's five-year rolling outlook says the cost of services such as adult social care and for special needs children keep growing.

It adds: "These challenges continue to be amplified without any real sign of abatement."

The report, which will be delivered to full council on Tuesday, says that the most likely scenario based on factors including forecast inflation, service pressures, funding and staff pay would see a budget deficit of £17.8m next year.

While this would drop to £8.5m in 2025/26, it then increases to about £32m in each of the next three years up to 2028/29, with a peak of £32.1m in 2026/27.

By law, the council has to set a balanced budget, so massive cuts and savings and a huge amount of new income would be needed if there is no additional government support.

According to the Local Democracy Reporting Service, the report says that even in a best-case situation, the funding gap would be £6.5m in 2026/27 and £4.7m two years later, with a worst-case scenario of £40.1m next year rising to £81.2m by 2028/29.

The report says that even with cutbacks, the council will need to explore a range of measures to close the shortfall, including maximising existing efficiencies in departments, generating more income with higher fees and charges and deep dives into services with high costs.

The medium term financial plan sets the context for each year's annual budget, which will be recommended by cabinet in January following public consultation and then approved by full council in February.