WARRINGTON Borough Council is facing a significant financial challenge for the upcoming year, with a projected funding shortfall of over £34 million. The council’s financial forecast for 2024-25 already shows an overspend of nearly £29 million, indicating a concerning trend in budget management.
The financial strain on Warrington Borough Council is not an isolated issue, as councils across the north west region are collectively facing a funding gap of £421.9 million for the next financial year, according to research conducted by UNISON. This widespread deficit in council finances is expected to result in substantial cuts to essential services and potential job losses, posing a threat to communities across the region.
UNISON’s report, titled “Councils on the Brink,” warns of the imminent risk of the collapse of local government if the growing financial problem is not addressed promptly. The research highlights the dire state of council funding in the north west, with significant shortfalls predicted for various local authorities in the region.
Among the councils with the largest projected deficits for 2025-26 are Cheshire West and Chester Council (£58.8 million), Cheshire East Council (£41.9 million), Warrington Borough Council (£36.5 million), Manchester City Council (£28.8 million), and Stockport Borough Council (£26.4 million). These figures underscore the magnitude of the financial challenges faced by local authorities in the north west.
Lynne Morris, UNISON North West regional secretary, expressed grave concerns about the precarious financial situation confronting councils in the region. Morris emphasized the essential role of local authorities in supporting communities and delivering vital services, stressing the urgent need for decisive action to stabilize council finances.
The legacy of austerity measures implemented over the past 14 years has left local authorities struggling to maintain essential services and manage budget constraints. The financial settlements imposed by previous governments have forced councils to make difficult decisions, including selling off assets, closing facilities, and reducing staff numbers.
While the current financial landscape presents significant challenges, there is a recognition of the value of investing in public services to foster economic growth and support local communities. The new Government has been urged to prioritize the restoration of funding to enable councils to rebuild and address the pressing needs of their constituents.
Despite the projected shortfall for Warrington Borough Council in the next financial year, the council remains committed to managing its budget effectively. The council’s report to full council highlighted a projected budget gap of £34.7 million for 2025-26, reflecting the ongoing financial pressures facing the local authority.
Cllr Denis Matthews, the council’s cabinet member for corporate finance, acknowledged the complexities of managing council budgets amid increasing demands for services. He emphasized the importance of targeted interventions to address the projected overspend and mitigate financial risks.
The current financial landscape for local government reflects a broader trend of fiscal challenges across the sector. Despite being well managed, local authorities continue to grapple with mounting pressures and constrained budgets. The need for sustainable financial planning and strategic decision-making is paramount to navigate the complex economic environment.
As councils work to address the funding shortfalls and budget constraints, collaboration between local authorities, the Government, and community stakeholders is essential to safeguard essential services and support the well-being of residents. By prioritizing sound financial management and resource allocation, councils can strive to overcome the financial hurdles and ensure the delivery of critical services to their communities.