A Cumbrian council has admitted its financial situation was challenging – but said it was working hard to control escalating costs.
Authorities across England are struggling with demands on their services and Birmingham City Council was forced to freeze its spending entirely as it grapples to repay £760m in equal pay claims.
Cumberland Council said, in papers released ahead of a meeting next week, initial financial forecasts suggest services it provided could cost an extra £28.9 million.
It is also managing its transition as a new authority – it was only formed on April 1 when Copeland, Allerdale and Carlisle councils merged.
It said it had undertaken a rigorous review to identify savings and the possible support from Government through the transition process, the potential overspend will reduce to £17.5 million, which will need to be funded through its reserves.
Escalating costs are mainly attributed to the increasing and ongoing demands within adult and children’s care services, it said.
A statement added: “The council has a legal obligation to fund these services, which have seen an unprecedented rise in both overall demand and complexity of need since the COVID-19 pandemic.
“One of the key challenges faced by the council is the mounting reliance on social care agency staff, a situation common to many local authorities grappling with recruitment difficulties.
“When the initial budget was agreed, the council identified numerous financial pressures which included having to duplicate a number of staffing positions.
“This was as a result of the local government reorganisation process which saw county council roles being split between the new Cumberland Council and Westmorland and Furness Council on April 1.
“The council is now advancing plans to transform and restructure its services to bridge the funding gap and make further efficiencies.”
Councillor Barbara Cannon, Cumberland Council’s executive member for financial planning and assets, said: “The combination of years of funding cuts from central government, rising costs, and surging service demand has created a formidable challenge for local authorities like ours. We are constantly pressed to do more with less.
“We are committed to building upon the transformation and improvement initiatives already underway as part of the local government reorganisation process. Our primary goal is to ensure every taxpayer’s pound is spent wisely to deliver essential services across Cumberland.”
Council leader Mark Fryer added: “We know that we face significant challenges in the coming years. Some of which we can offset from the development of our transformation plan and implementation of the new operating model.
“But we simply have to acknowledge the need for public service reform in this country. We need a new deal for local government.
“The existing public sector funding formula doesn’t work for areas like ours and needs to be overhauled. Pressures, particularly on councils with social care responsibilities, are pushing many well-run councils to the brink of bankruptcy.
“The demand on social care services grows daily and is compounded by rising inflation and interest rates which intensifies our financial complexities. Whilst we now have a clearer understanding of the financial legacies from our four predecessor councils, we are acutely aware that we have work to do but the local government sector needs national help.
“As a new unitary authority, we have integrated services on an unprecedented scale. We have a comprehensive plan for Cumberland, but we recognise that the next few years will be very demanding. Our primary objective is to continue to deliver high quality services to our residents. We will explore all opportunities and work with willing partners to ensure this happens.”
