Oldham Council faces a predicted overspend of £20.4m for the year, primarily due to rising costs in adult social care, children's services, and temporary accommodation. The council is appealing for government support to alleviate the financial strain and prevent a potential financial collapse.
Oldham councillors urged the government to provide local authorities with adequate funding ahead of a crucial settlement announcement on Wednesday (December 18). This plea came during a council meeting on Monday (December 16) to discuss the borough's financial situation, which is facing a projected overspend of £20.4m for the current year.
Cllr Abdul Jabbar, the finance lead, expressed hope that the government would recognize the council's struggles and allocate the necessary resources to address long-standing issues. He emphasized that the overspend is driven by rising demands and costs in areas like adult social care, children's services, and temporary accommodation, reaching a total of £16.7m in expenditure. Jabbar acknowledged that Oldham is not unique in facing these pressures, as local authorities nationwide grapple with similar challenges. However, the situation in Oldham is particularly acute due to low council tax income and historically high social needs, exacerbated by the cost of living crisis. The financial strain has raised concerns about the possibility of a Section 114 notice, effectively a council bankruptcy, with some councillors suggesting the depletion of reserves - a 'rainy day fund' used in recent years to bridge budget gaps - leaving the council vulnerable to collapse
Local Government Funding Crisis Social Services Overspend Oldham
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