Blackpool’s Tory opposition leader has warned of council tax rises and cuts to services despite a £17m funding boost for town hall spending next year.
Coun Paul Galley, leader of the Conservative group on the council, branded its finances as being in ‘dire straits’ and says over-spending in key areas of this year’s budget will impact residents in the coming financial year.
He also warned rises in national insurance would hit town hall budgets where there are concerns around areas such as social care provision.
He said: “Blackpool Council’s finances remain in dire straits under the long standing mismanagement by the Labour Council, and the recently announced £17.7m of additional government funding is unlikely to resolve the deep-rooted financial issues.”
He warned: “Next year residents face the prospect of reduced services and a maximum rise in the council tax to bridge the gap.”
The £17.7m funding boost, which is a 9.1 per cent increase compared to the current financial year, was announced in December as part of the government’s Provisional Local Government Finance Settlement, which is the annual determination of funding to local government from central government.
However the council is projected to overspend by £7m on its current budget with reserves now expected to plummet to just £30,000 by the end of the financial year from £7m at the start of the year.
Council tax in Blackpool rose by five per cent in 2023 and 2024, with councillors set to agree the level of council tax for 2025/26 in the coming months.
Coun Galley added: “The budget gap for the next financial year is projected to be £21.1m, compounded by ongoing overspends of over £8m in children’s and adult social care.
“Additionally, the under performance of the Growth and Prosperity programme, falling short by nearly £5m, has contributed to a bleak financial outlook.
“The council’s working balances are predicted to plummet to just £30,000 which is far below the target of £8m. This precarious situation comes even before factoring in the impact of rising national insurance costs which will impact not only on the council itself, but on council-owned companies and providers.”
Coun Lynn Williams, leader of the Labour run council, has blamed 14 years of under-funding by the previous Conservative government for the budget crisis.
She has previously welcomed the funding increase but questioned whether it would be enough to make up for previous cuts.
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