Soaring energy prices and workforce pay increases stand to leave a £26million hole in the finances of Trafford council with town hall bosses now facing a raft of 'difficult decisions'. The warning came from the authority's executive member for finance and systems Coun Tom Ross at a scrutiny committee meeting last night (September 21).
His report highlighted a budget gap of £15.7m for 2023/24 and a further £2.7m the following financial year. Over the last two years the council has drawn £22.6m of reserves to balance its books which Coun Ross said was 'not sustainable.
He told colleagues there were 'no easy solutions' as more than £170m had been saved through efficiencies, savings and additional income since the beginning of austerity in 2010. "We've been working hard in the background to find ways to bridge the budget gap," said Coun Ross.
And he spoke of launching a lobbying campaign to Government and trade unions to underline the challenges that the local authority faces ahead of the publication of its draft budget proposals in October. However, Coun Ross pledged: "Although local authority finances remain a challenge, we will get to a place in February when we will balance the budget."
Meanwhile, demand for services is continuing to rise and people's needs are changing while residents 'still have high expectations of service delivery', he said. Coun Ross went on: "There is a recognition that we cannot change Trafford by ourselves - collaboration and working with others is key. Doing nothing is not an option.
"We need to think how we can do things differently, but this may mean making difficult decisions." An 'ideas scheme' for staff has been launched for savings with an initial £700,000 identified and a lobbying leaflet and letter is being drawn up to Government ministers alongside ongoing dialogue with the Department of Levelling Up, Housing and Communities.
Coun Jill Axford told the meeting: "We are facing a situation where demand pressures keep growing and our funding isn't matching it. I am keen for us to tell the story of just what pressures local authority budgets are and how increasingly difficult it is."
Coun Laurence Walsh pointed out that Trafford did not know yet what its forthcoming financial settlement with the Government was likely to be. "A deficit of between £24m and £26m in funding is a pretty sobering figure," he said.
Coun Ross replied: "We've got a new Government who are saying they are going to be cutting tax. We don't know if that means they are going to be putting money into public services."
The council's Finance Change Programme would assess risks and impacts to staff, vulnerable residents, the council's reputation and digital strategy, he said. Trafford is planning to undergo a period of consultation, using digital, video, social media platforms, blogs, a tailored page on its website and an intranet page.
There will be public consultation on all budget options affecting residents - possibly face-to-face including main events which could be live streamed. 'Targeted consultations' with user groups will take place and there will be 'staff consultations'.
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