WARWICK District Council is not ‘on the brink’ and will be able to balance the books next year.
That was the reassuring message from the authority’s head of finance Andrew Rollins and resources spokesman Coun Jonathan Chilvers.
It followed new figures released by Unison which predicted WDC faced a £2.4million budget shortfall for the next financial year. The figure was in the trade union’s national report ‘Councils on the Brink’, which measures the difference between each council’s income and the amount needed to maintain services.
Mr Rollins and Coun Chilvers, in a joint statement to The Observer, said: “We would like to assure residents that Warwick District Council is ‘not on the brink’ and will be able to set a balanced budget for 2025/26. We are also well placed to be able to achieve this in future years using ‘in-year’ funding sources rather than a relying on cash reserves.
“Warwick District Council’s current Medium Term Financial Strategy (MTFS), last approved by members in February, outlined that the council will likely have a funding gap when setting its 2025/26 budget, which may necessitate the need to bridge the gap in the short term through reserves. Local Government funding is a sector wide challenge and not unique to this council.
“The council recognise the deep responsibility we have holding taxpayers’ money and using it wisely and acknowledge the deficit within our MTFS for 2025/26. As part of the council’s response to addressing the financial position, the council has made delivering financial sustainability one of its three strategic priorities within the Corporate Strategy Warwick District 2030. This is the foundation for ensuring there are resources to continue to enable residents to receive excellent high-quality services that are responsive and accessible to local needs.”
Warwickshire County Council is facing a £14.5million black hole according to Unison, which said councils across the UK had been ‘clobbered’ by the previous government through ‘harsh’ financial settlements such as the phased removal of the Revenue Support Grant, 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.”
