Yahoo News Warning over finances ahead of Blackpool Council meeting
Blackpool’s council leader has warned steps will need to be taken in next year’s budget to get town hall finances back on track. Coun Lynn Williams says pressure on spending this year means the council’s reserves are likely to dwindle to just £78,000 by the end of this financial year.
The figure, which was first revealed in a council report in October, represents a drop from £7m at the end of the last financial year. It has been blamed on overspends including in Adult Services of £3.6m and Children’s Services of £3.3m.
In a report to a meeting of the full council on Wednesday (November 27) Coun Williams also says interest rate movements and a pay award above levels expected in the budget have resulted in a forecast overspend of £7.026m as at month five of the financial year.
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She says: “As part of setting the 2024/25 budget, the team undertook an assessment of reserves to identify the key risks that could impact on the council’s resources. Working balances were established at £7.1m with the ambition to increase these to £8m by 31st March 2025.
"If the forecast at month five was reflected at year-end, working balances would reduce to £78k, making it important to re-establish these reserves when setting the budget next year.”
Coun Paul Galley, leader of the Conservative group on the council, has previously warned services could be impacted if the finances are not brought back on track.
