COUNCIL chiefs will have to close an £85m gap as they begin the process of setting a balanced budget for 2027/28.
Worcestershire County Council has invited residents to have their say on how the authority spends its money.
But closing that funding gap will mean “tough choices”, the council warns, which ultimately could mean cuts to services.
Former leader Adrian Hardman warned recently the council could end up delivering only statutory services – those it is legally required to provide.
FULL COUNCIL: Councillors will have to set a balanced budget by March 11 by the latest (Image: Phil Wilkinson-Jones/LDRS)
In order to set a balanced budget in recent years the council has eaten up £41.4m from its own reserves and in the past two years has used £93.5m of exceptional financial support (EFS) – emergency government support that allows the authority to borrow or sell capital assets to fund day-to-day running costs.
But these are short-term measures and not sustainable long-term.
The council is forecasting an £8m overspend in 2026/27 even with £59.9m of EFS, mostly due to the increasing cost of adults and children’s social care.
In its budget consultation papers, the council says the cost of its core services, which also include highways, schools, waste disposal, home to school transport, libraries and public health, is expected to rise by £47m.
Council leader Matt Jenkins has pledged that council tax won’t rise by more than five percent this year, which would bring in roughly an additional £20m and cost the average Band D household an additional £88 a year.
A three-year settlement from the Government confirmed earlier in the year gives the council an additional £0.6m in 2027/28 and £1.4m more in 2028/29.
But “that is nowhere near enough to keep pace with rising demand and inflation, especially in social care,” the council says.
Consultation papers also warn that the council has only £9m left in its risk reserve – essentially a rainy day fund.
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The consultation, which can be found on the council’s website, runs until October 31.
Councillors are likely to start debating a draft budget in the next full council meeting, which is scheduled for November 12.
The council traditionally sets its budget in February and next year will be required to set both the budget and its council tax by March 11 at the latest.