Multi-million cuts and efficiencies needed at Telford & Wrekin

Cuts and ‘efficiencies’ of more than £4million will be needed at Telford & Wrekin Council over the next five months if it is to stay within budget, a report reveals.

Officials at the Labour controlled council have forecast a massive further increase in care costs for elderly people which they say has been identified in the last three months.

Council officers say they will now have to use up all their budgeted ‘contingency’ reserves and make savings to stay within their budget.

Legal officials will be involved in assessing some of the savings which may require “consultation” if there is an impact of “any proposed savings on the delivery of statutory services and any other legal matter arising.”

Unlike Shropshire Council, which is teetering on the edge of bankruptcy, Telford & Wrekin Council still has a Budget Strategy Reserve of £21.7m which it can swing into place if the situation deteriorates further.

Council officers say the council’s budget could be under even more pressure if there is a bad winter.

Council leaders say they “cannot and will not compromise on the level of care elderly residents and the most vulnerable in the community deserve.”

A report set to go to the council’s cabinet next week says it will need an additional £14million to cover the costs of providing adult social care packages through to the end of March 2026.

They have forecast using up contingencies and an added £4m of savings and efficiencies to reach a balanced budget. In July the council was forecasting having some contingencies left.

This is in addition to £77million committed at the start of the year in its £167.64 revenue budget to fund adult social care.

Councillor Zona Hannington (Labour, Lawley), cabinet member for finance, governance and customer services, said:“Last year through hard work and innovation we delivered savings across adult social care totalling £6million.

“This work is continuing to ensure we are as efficient as possible but factors outside of our control, including the need to care for an ageing population with people living longer, continue to see the costs of care rise.

“We continue to manage budgets and we will continue to monitor the position through to the end of the financial year in March but we are forecasting around £14m additional funding being required to meet demand.

“Due to our strong record of financial management over so many years, we will utilise contingency budgets and seek further in-year efficiencies to meet this cost with a view to delivering a balanced budget at year-end which is something we have achieved for the last 16 years.”

The cuts will come on top of £181.7m of savings it has made over the last 16 years. It has slashed senior management by half, saved £2.3 million in running costs from disposal of Council buildings

Councillor Kelly Middleton, (Labour, Woodside) the cabinet member responsible for adult social care, said: “Our role as a council is to care for our community and despite the rising costs, people must remember that we are talking about somebody’s mother, father or grandparents and they all deserve the right care and most appropriate care to meet their needs.

“We will continue to protect, care and invest whilst working hard to do what we can to manage budgets as effectively as possible.

“Ultimately wherever possible, our aim is to support people to live independently for as long as possible but we need to ensure people are receiving the right care and this year we have seen an increase in demand for older people and for those with dementia and those requiring specialist care.”

National reports have shown that last year adult social care budgets were overspent by 80 per cent of councils.

Councillor Hannington added that the council is continuing to “speak with Government at a national level around revised funding formulas to tackle this well-documented national issue.”