A FINANCIAL black hole of over £14.5million could lie ahead for Warwickshire County Council (WCC), according to new figures released by Unison.
The trade union has predicted the shortfall for the next financial year in its national report ‘Councils on the Brink’, which measures the difference between each council’s income and the amount needed to maintain services.
Unison says councils across the UK were ‘clobbered’ by the previous government through ‘harsh’ financial settlements such as the phased removal of the Revenue Support Grant (RSG), which in 2010-11 provided WCC with £11.7million.
A WCC spokesperson said the council was facing ‘significant financial challenges’ like many others across the country.
They added: “We have a statutory duty to set a balanced budget each year and our robust forecasting and prudent financial management support us to do that.
“There is, however, significant tension between this requirement and our statutory duty to provide services in key areas where demand is increasing.
“Like any well-run organisation, we have acted swiftly to mitigate the current pressures. At the same time, we are also working on options for setting our 2025-26 budget and five-year Medium-Term Financial Strategy over the coming months.”
At Rugby Borough Council (RBC), a shortfall of £365,000 is predicted.
At its peak in 2013-14, the RSG provided the council with over £3.1million before it was entirely phased out by 2019-20.
The council said it expected to receive new funding from government for the next financial year, but was unable to say how it would balance the books for 2025-26 until the government announced its October budget.
An RBC spokesperson said: “It’s no secret local councils across the country face significant financial challenges.
“RBC included a savings target of more than £5million for the 2025-26 financial year in the report considered by councillors before council approved a balanced budget for 2024-25 earlier this year.
“The council works all year round to address budget pressures. When the Chancellor delivers the autumn budget at the end of next month and the government confirms allocations to local government from other funding streams, our work on next year’s budget can move forward with greater clarity.”
UNISON West Midlands regional secretary Ravi Subramanian said councils were ‘teetering on the brink of financial disaster’.
He added: “Countless essential services and very many vital jobs are at risk. Ministers cannot ignore the terrible plight of authorities of every political persuasion.
“There’s an unquestionable need to turn the page on the destructive cuts of the past and invest in services and staff to help councils rebuild Britain.”
