Telford & Wrekin Council faces £25 million cut in its spending
Another £25 million will need to be cut from Telford & Wrekin Council's budget over the next three years as it faces up to an "extremely challenging" future, the authority has revealed.
The council has said that its is on track to complete this year with a balanced budget, but that it is having to plan for more cuts over uncertainty in funding that it will receive from government.
The authority said that is under pressure in both its adult social care, and looked after children's departments – two of the most costly services. The council has confirmed that it has put in another £1 million to help both departments.
A statement from the council said: "Overall however, there remains long term uncertainty around the budget as the Government has still to confirm future funding arrangements for councils from April next year.
"Using the best information currently available though, Telford & Wrekin is expecting to have to make a further £25 million of savings from its budget to 2022. This will be on top of the £123 million that it has saved from its budget in the last 10 years."
Despite the situation the council said it expects to end the year with a contingency fund of £3.6 million for unforeseen issues or emergencies for the rest of the year. Any money left over would then be used on "key community priorities" or to "help support the budget in future years", according to the authority.
Cabinet member responsible for finance Lee Carter said he was pleased with how the council is coping with the pressure.
He said: “While many councils are struggling to balance their budgets, we are yet again on track to complete the year in budget, even after allowing some extra relief to those areas most under pressure – looked after children and adult social care.
“Looking after the most vulnerable in the community is one our key priorities so it’s only right we do this
“Equally creating a better borough is one our most important goals so it’s equally right that we allocate some extra funding for our Pride in Our Community initiative to help further improve the borough’s environment.
“Despite this prudent approach, the future still looks extremely challenging with £25 million more savings to find by 2022 and still no clarity from Government on how local government’s funding will work, which make it extremely difficult to plan for the longer term for the borough.”
The authority said its treasury management work was proving successful, and is performing £2m ahead of target.
It said another £400,000 would be spent on its Pride in Our Community initiative.
