Budget cuts are looking increasingly likely in Sefton this year as the council struggles to balances its books amid spiralling costs.
In a council report released this week, a grim picture is presented of the financial pressures being brought to bear on the borough’s budgets.
It warns that a return to the “financial principles used in previous years” may be on the cards as the council tries to plug an ever growing fiscal gap.
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This could mean cuts to council budgets in future as well as new measures put in place now to try to ensure the deficit is tackled. Those measures include recruitment freezes, and tight controls on existing funding.
This comes on the back of two previous occasions last year when the council found itself facing a growing deficit and had to take measures to rebalance the budget.
In September, officers warned there was “no flexibility left” with the council dipping into some of its reserves to cover costs.
So far this financial year the council have taken steps to mitigate around £20m of budgetary pressures, with £16m of that due to increased costs in children social care.
Adult social care and pay awards have added to the budgetary pressures, with officers also confirming £2m has also been added to to the borough’s energy budget.
According to the report this is all set against the backdrop of inadequate central government funding and alongside inflationary pressures.
Alongside that is increased demand for complex and high needs placements creating a £7.5m overspend and a £6.2m cost of agency staff brought in due to staff shortages and ongoing vacancies.
A meeting of the council’s overview and scrutiny committee will discuss the report next week at a meeting at meeting behind held at Bootle Town Hall, with the recommendations of measures to be taken to shore up the borough’s budgets once again to be brought to cabinet later in the month.
The report warns, however, in the coming months and year – and in the absence of further government funding – Sefton Council and its residents may find themselves once again facing council cuts and austerity in the battle to balance the borough’s books.
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