WARRINGTON Borough Council has issued a statement on voluntary redundancies amid a forecast overspend of almost £29 million.

As reported earlier this week, a budget monitoring report for quarter one of 2024-25 will come before the cabinet at its Town Hall meeting on Monday.

According to the report, the budget planning process for 2025-26 to 2028-29 is currently in progress.

It also states that, at the end of quarter one, the financial forecast outturn for 2024-25 is an overspend of £28.985 million.

“Forecast overspends in service departments at this early stage of the year are of significant concern, and action will need to be taken by department managers to mitigate them,” it said.

“The forecasts are however an early estimate of the year end position of the council based on current trajectories and evidence, and the actual overspend has not yet happened.

“The forecast overspends are an early warning of issues on the horizon that need to be addressed.”

The report says the council is ‘clearly facing a difficult budgetary position with an overspend of this magnitude’ – and to mitigate this position a number of financial measures will be introduced.

These include monthly budget monitoring will be implemented for the cabinet and the senior leadership team (SLT), the SLT is to continue to review the budget position on a weekly basis, cash limited budgets are to be introduced for 2025-26 and beyond, a refreshed council-wide voluntary redundancy exercise to be developed with trade unions and implemented at pace, and to explore opportunities for securing additional external funding.

However, it says that these recommended actions are all ‘relatively short-term measures’ that can be introduced quickly, however, a ‘longer-term solution is required’.

According to the report, if these actions are not introduced and followed, and the budgetary position ‘continues or worsens’, then the council would ‘need to consider’ issuing Section 114 notice or applying to Government for exceptional financial support.

“A full transformation programme that will fundamentally change the authority will also be considered, in order to continue to deliver effective services in an increasingly challenging financial environment,” it added.

“By taking strong and early action the council aims to avoid the greater risk to frontline services which would occur by not taking action.

“By acting in this transparent and clear way we aim to identify and take the further difficult decisions that will be needed in a planned and effective manner that minimises the potential for disruption.”

In relation to the refreshed council-wide voluntary redundancy exercise to be developed with trade unions and implemented at pace, the council has been asked if any early work or planning on this has started.

It has issued a statement in response.

A spokesman said: “The opportunity for employees to request voluntary redundancy has always been open for people to consider making on an individual basis, to support the council’s ongoing savings requirements.

“We are opening up a corporate-wide scheme so that more people are aware that they can request and consider the possibility of taking voluntary redundancy, again supporting the council’s need to make financial savings.”

Furthermore, the spokesman confirmed that the council has not held any early discussions with the Government about applying for ‘exceptional financial support’.