Worcestershire County Council has been warned it is facing "severe and escalating" financial pressure that is not sustainable without another emergency government bailout. An independent report into the council's finances also warned that reserves were "critically low", with the authority "repeatedly unable" to deliver big savings and facing a "widening" black hole.
The alarming assessment followed the council's securing of a £60m bailout in emergency government support for this financial year.
Council Leader Responds to Report Findings
The authority's leader, Green councillor Matt Jenkins, said: "We are not going to argue with the findings of the report - we are getting on with fixing the issues it identified."
The increasing demand in children's and adult social care is cited as the biggest problem, with the authority's "financial sustainability the most significant area of concern". The overall budget deficit is one of the biggest in England - forecast at £84m in 2027-28 - with the report stressing it is "essential" a "major transformation programme" plugs the gap.
Political Changes and Financial Challenges
The review examined a time period when the authority was controlled by Reform UK, which axed jobs in areas like IT and HR to cut £9m from spending. Jenkins added: "Decisions that should have been taken last year were not taken, and that has made the task more challenging. There is more (cuts) to come, and some of it will be difficult. It is our responsibility now, and we will deliver what is needed while protecting the people who depend most on this council."
Adam Kent, the deputy leader and cabinet member for finance, said "procrastination and delay" was part of the problem. He added: "It's been a total financial car crash from the previous administration - we've now got a cabinet where everybody's got expertise and we're getting on with the task ahead of us."
Opposition and Future Outlook
Reform group leader Alan Amos said the former administration had inherited a council which was "bankrupt, with spending and borrowing out of control and reserves at a dangerously low level". He added: "We will be monitoring and challenging everything they do, given that they opposed all our efforts to pass a balanced budget."
As it stands, Worcestershire County is facing a challenge in even getting to April 2028 - and will need even more Exceptional Financial Support, a government mechanism to prop up distressed councils. The external assurance review is the work of the Chartered Institute of Public Finance & Accountancy, running at over 60 pages. It warns that "political tensions in Worcestershire have created a fragile environment for financial recovery", with councillors mired in past disagreements over council tax, savings and service redesigns. It also described the reserves kitty of £23m - money stashed away for use in the event of any financial shocks - as being "critically low", so low that it works out at just 4.6% of the net budget.
Since May, the council has been controlled by a Green-Lib Dem-independent coalition. The report's conclusions suggest teamwork will now be more vital than ever across the political divide.
