Worcestershire County Council is grappling with a £33.6 million funding gap, prompting calls for government assistance to balance its budget.
Worcestershire: So, Worcestershire County Council is in a bit of a pickle. They’re looking at a whopping £33.6 million funding gap for the 2025/26 budget. They’ve even reached out to the government for a helping hand to get things sorted.
Steph Simcox, the deputy chief financial officer, made it clear that this isn’t about poor financial management. She said it’s all about rising costs and not being able to bring in enough income to cover them.
Even though the government threw in an extra £17.6 million, it’s just not enough to tackle the financial pressures they’re facing. It’s a tough spot for them.
To help fill this gap, the council is thinking about raising council tax by 4.99 percent. Ms. Simcox pointed out that they’re one of the lowest council tax chargers in the country, sitting at third lowest. But with everyone else raising their rates, they might have to follow suit.
The chief financial officer is also asking the government for some exceptional support. This could mean borrowing money or selling off some assets to keep things running smoothly.
When asked about when they might hear back from the government, Ms. Simcox mentioned it could be late February or early March. They’ll need to approve their budget next month, but only if they get a supportive letter from the government.
She emphasized that the budget can only be balanced with that support. If not, they might have to make some serious cuts or even declare a section 114 notice, which is like saying they can’t spend any more money.
While councils can’t technically go bankrupt, issuing a section 114 notice would mean they can’t commit to new spending, leading to more service cuts. It’s a tough situation for everyone involved.
