Brentwood Borough Council facing £2.3m funding gap by 2024/25

Brentwood Borough Council is facing a funding gap of £2.3m in the next three to four years

An Essex council is facing a funding gap of £2.3m by 2024/25.

Brentwood Borough Council expects to spend £11.2m that year, with only £8.9m of funding expected, reports the Local Democracy Reporting Service.

Jacqueline Van Mellaerts, the council's finance chief, said the council had "a minimum level of reserves" left and current spending was not sustainable.

Reduced revenue from parking due to the pandemic is part of the cause, the council said.

The forecasted funding gap for 2024/25 is £380,000 bigger than in 2023/24 and £898,000 more than in 2022/23.

Ms Van Mellaerts said the council was not in a position where it needed to make a section 114 notice, which effectively declares a council bankrupt.

"We have a minimum level of reserves," she said.

The council currently has £2.8m in reserve and it was warned that this could be exhausted in three years if nothing is done.

"That is for significant situations like the pandemic and we will rebuild those reserves," Ms Van Mellaerts said.

"It is not sustainable - but this is a snapshot in a point in time as we know it and decisions will be made as to fill that gap going forward."

Parking income has stayed at 75% of pre-pandemic levels since June 2021 and is not expected to increase as ways of working change.

Councillor David Kendall, Liberal Democrats, said: "I personally think that looking at this report we should be very worried - all councillors should be very worried.

"Because on the face of it we are going bankrupt."

Chris Hossack, Conservative leader of Brentwood Borough Council, said: "The reason I am optimistic is we have had a health check in the way we approach this problem and the Local Government Authority are very satisfied in terms of the staff, the skills, expertise and the process we're going through that we are doing the right thing.

"That's in terms of the process and our actions to address the issue, actually addressing the numbers doesn't belie the fact it remains a significant challenge."