Northumberland County Council will need to make cuts to balance its budget, a senior cabinet member has warned, as the authority faces cost pressures from inflation and rising demand for services.
The council is set to receive a £3 million uplift from central Government, while council tax is expected to rise by the maximum level allowed. However, cabinet member for finance Coun Nick Oliver said this would not be enough to cover the gap.
Funding shortfall exceeds £45 million
Speaking at full council on Wednesday, Coun Oliver said: "Things are challenging. We have had two rounds of what I call blood on the carpet budget meetings where executive directors and portfolio holders look at what we can do to deliver services more efficiently."
"To give you some context, we're getting about £3 million more in Government funding this year and that won't touch the sides. We have cost pressures, inflationary pressures and demand pressures that will likely be in excess of £45 million."
"Even with the requirement to raise council tax by the maximum of 5%, that will still be less than half of what we need. We have been working really hard, we have found a lot of efficiencies but we still have a significant gap."
Overspend forecast and Government support
In September, the council was forecasting a £7.9 million overspend by the end of the financial year. Social care for adults and children were both particular drivers of overspends, with increasing demand and increasingly complex individual cases.
The Government's recent budget did look to reduce some pressure on local authorities. This included the write off of 90% of historic SEND deficits accrued by councils up to 2025/26.
Local Government Association response
However, the Local Government Association warned that with no overall funding increase for local government, councils would "continue to struggle to meet demand and provide services to our communities".
Coun Eamonn O'Brien, Chair of the Local Government Association, which represents councils, said: "Government recognises that councils are central to achieving good growth and rewiring the state. These ambitions cannot be achieved if council finances remain fragile and reliant on emergency bailout agreements.
"The full value of local government will only be unleashed if both local and strategic authorities are empowered and financially sustainable. We need a new deal for local government."
Coun Oliver added that further meetings would be held to try and plug the gap, which he said the council was determined to do, concluding: "It's not a pretty picture."
