Southend council faces its biggest financial challenge in history

Southend-on-Sea City Council says it may have to cut or reduce services

A city council has said the size of its financial challenge is "the biggest" in its history.

Southend-on-Sea City Council has warned "unprecedented financial pressures" would inevitably lead to a reduction in the range, quality, cost and responsiveness of some services.

The authority already had a projected £14m overspend this year due to inflation and demand for its services.

The Conservative council leader planned to ask the government for more money.

Last year, the unitary council was told it had to make "stringent" cutbacks to avoid bankruptcy within three years.

"The financial pressures and soaring costs that everyone is experiencing individually in their homes is also being experienced by the council creating extra unprecedented pressure," Tony Cox, leader of the council, said in a statement.

"Urgent review and regular financial reporting will give us a much better understanding of where we are and what we need to do but, more importantly, how we do it."

Conservative council leader Tony Cox said he planned to lobby government for more money

Mr Cox added that the authority was not in a position where it would need to file for a section 114 notice like councils in Birmingham and Thurrock, which would declare it could not balance its books.

He planned to lobby the government for more money and a "fairer deal".

In papers published ahead of next Monday's cabinet meeting, setting out the financial position of the authority, the council said that half the cost pressure came from children's services and a rise in complex cases.

It warned that an "even tighter grip on all spending" was needed across all council services.

Tougher money saving plans that might need to be brought in include:

• A recruitment freeze

• Essential spending only

• Close services/reduce services

• Remove all subsidy from discretionary services

• Rationalise its estate and reduce poor quality underutilised front-line provision (children centres, libraries, leisure etc.)

All capital investment projects more than £100,000 would also have to be reassessed and non-urgent ones could be scrapped.

Labour described the Conservatives' management of the finances as "feckless".

Until May, Labour had run Southend with Lib Dem and independent councillors since 2019.

Labour accused the Conservatives of adding £10m to the deficit since taking control by bringing in policies that included reducing car parking charges.

Opposition leader Daniel Cowan tweeted "from day one they have increased expenditure without raising new revenue".

Earlier this year, a BBC investigation found the average UK council faced a £33m predicted deficit by 2025-26, a rise of 60% from £20m two years ago.

The government said decisions on the funding beyond the next financial year had not yet been made.