By Report warns of council’s ‘increasingly acute’ financial position
A council report has sent a stark warning, describing North East Lincolnshire council’s finances as ‘becoming increasingly acute’.
At the mid-point of the 2021-22 financial year, the council is on course to record a £4.3 million overspend against its budget.
The report, which is set to be discussed at next week’s council cabinet meeting, explains that the forecast “reflects the on-going impact of CV19, and the subsequent risks and demands being experienced.
“We continue to work with services to manage and mitigate demand and workforce pressures although the financial position is becoming increasingly acute.”
One of the biggest problems this report points to is the cost of helping children from troubled backgrounds, which have soared recently.
It is reported that the council is missing around £6 million in unpaid council tax, with the pandemic continuing to be hard on families and their income.
“Collection rates, in particular non-domestic rates, have been affected by CV19 and we are continuing to monitor the position” the report says.
“The impact on future years income remains a risk and will be impacted by the pace at which the local economy recovers.
Despite this strong concern the council isn’t beginning to panic and is instead hopeful that the local housing growth continues.
They are also hopeful that recent business growth continues, with renovation projects in the town centre and South Humber Bank looking to be beneficial for the local economy.
“The Council’s long term financial strategy remains focused on the achievement of financial sustainability through economic and housing growth and therefore the pace of delivery is critical.”
However, even with this growth, the report does not predict a Grimbarian-utopia, saying that the council “faces a range of challenges” in the future.
“Including the continued and long term impacts of CV19, NHS reform, changes to local government funding models, inflationary pressures and demographic impacts on social care demand.”
