Council creaking under pressure of cash crisis

AUTHORITY ON BRINK OF BANKRUPTCY DUE TO SOCIAL CARE NEEDS

- By EDWARD BARNES

RISING pressures caused by older and disabled people needing more help and support are pushing a council towards another financial crisis, a new report says.

Wirral Council is potentially facing a budget black hole of nearly £50m from April next year and is expected to be over budget by £10.5m by March.

Earlier this year, the council said it expected to be over budget by £8m driven by overspends on the local authority's adult social care and public health department.

Now in a November budget update, the budget black hole for the current financial year is expected to be more than £10m with the situation more or less the same.

This £10.5m gap will need to be closed by April 2026 ahead of the next financial year.

If the council cannot do this by March 31, the local authority would have to issue a Section 114 notice and effectively declare bankruptcy.