'No merger' for Redcar and Cleveland Council as it cuts overspend

Redcar and Cleveland Borough Council announced a reduction in a predicted multimillion-pound overspend

Councillors have rejected talk of merging with a neighbouring local authority because of financial issues.

It comes as Redcar and Cleveland Borough Council announced a reduction in a predicted multimillion-pound overspend.

The council had been forecasted to overspend by £7.7m, but that has now been reduced by £3m.

Conservative MP Simon Clark had previously suggested the council could merge with neighbouring Middlesbrough.

After a number of "in year mitigation measures" were put in place by Redcar and Cleveland, the updated forecast for the financial year 2023/24 is currently for an overspend of £4.6m, the Local Democracy Reporting Service said.

Children's social care was said to be the "number one cost" for the council, which is led by Labour on a minority basis.

'Long-term solutions'

Councils are legally required to ensure they spend only what they can afford by producing balanced budgets, but a number in recent years have declared effective bankruptcy after being unable to mitigate pressures on their finances.

Labour councillor Christopher Massey, Cabinet member for resources, told a full council meeting: "In year all we can do at this point is manage that [the overspend] down, if we can't it is going to have to be reserves.

"We are aware reserves can only be used once, once they have gone, they have gone and we need long-term solutions."

Simon Clarke, Conservative MP for Middlesbrough South and East Cleveland, suggested Redcar and Cleveland council could merge with Middlesbrough

But he rejected the idea of a merger with neighbouring Middlesbrough, something recently suggested by the Conservative Middlesbrough South and East Cleveland MP Simon Clarke, who said it "might create a more resilient and sustainable local authority".

Mr Massey said: "In my opinion as a Redcar and Cleveland councillor, it would not be the sensible thing to merge with a council that has a 'best value notice' served on it and is also going through some of the challenges it is going through at the moment."

Council leader Alec Brown had also previously rejected any idea of a merger with Labour-led Middlesbrough Council.