Contingencies cushion against deeper cuts
Telford & Wrekin Council’s budget is expected to balance at the end of this year but only because the Council is set to use £3.6 million in contingencies.
The authority’s financial lead labelled this a wake-up call to the huge task ahead, as the Council must find at least another £35 million in cuts in the next three years on top of the £70 million it has already made since 2010.
This £3.6 million is after applying additional funds totalling £3.25 million specifically set aside in this year’s budget to help cushion the impact of cuts to adults and children’s services, two areas where pressure on budgets continues.
The Council is committed to ensuring that it balances its budget which is very difficult when the Government are making very significant reductions in grants year after year, forcing cuts to services.
Cllr Lee Carter, cabinet member for finance, added: “This is a warning for all of us of the very hard road ahead. It is only thanks to good planning that we are able to absorb these two main areas of overspending, but this can’t continue.
“We must take every opportunity to manage our budgets and make further savings as early as possible. Make no mistake, we have a huge task ahead and people in the borough will increasingly feel the effect of the Government’s cuts in funding – at least another £35 million over the next three years.
“Balancing the budget has to be done in a managed way with savings being phased in, particularly in the most sensitive areas, so that we can continue to provide essential care services that people depend on.”
