Service cuts and job losses are on the cards as Wirral Council continues to deal with a large budget gap for next year.
The latest projections for the council’s deficit in 2023 is £38m, down from previous projections in October it could be more than £49m.
Those projections were based on a worst-case scenario for the council at the time. Council officers said things could improve but it would be better to “prepare for the worst but hope for the best.”
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To close the gap of £38m, the council is looking at job losses and severe service cuts among other potential savings including using reserves but the full picture will not be known until late December. This is when the council finds out what money it will receive from the government for next year.
A recent report suggested leisure and tourism could see further cuts after it went significantly over budget due to less footfall and rising energy costs. The council was forced to close a number of libraries, golf courses, and leisure centres earlier this year to avoid bankruptcy.
The government settlement will set out the Government’s approach to council funding in the next financial year. Taking this into account, final decisions on the budget until January 2023 when more details about next year’s budget will be made public.
Council leader Janette Williamson has ruled out any proposals for a council tax rise until this is revealed. She criticised the government for allowing local authorities to increase their tax, saying it was a policy that would “push the burden onto the poorest households again.”
The Conservatives have been critical of the £49m projections of the council's financial situation, especially after councillors voted to call on the government for additional funding for the council. Conservative leader Tom Anderson said Cllr Williamson was “catastrophising” about the figures.
A spokesperson for finance at Wirral Council said: “The council’s budget deficit is not fixed until all the information about funding is available, but work begins early in the year to prepare the budget based on key assumptions.
“This year, given the economic climate and anticipated demand for council services, finance staff initially developed a ‘worst case scenario’ based on information available at the time. This estimated a potential £49m budget gap.
“Since the recent Autumn Statement by the Chancellor, and a refinement of assumptions, the latest forecast has shown some positive changes but still means we estimate that the council needs to find savings in the coming year of up to £38 million in order to set a legal budget.
“However, this is still an estimate, based on current information and the ever-moving financial landscape.”
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