TOWN Hall chiefs say a ‘fundamental change’ could be needed to ensure a forecast overspend topping £28 million is ‘not realised’.

A budget monitoring report for quarter two of 2024-25 came before the cabinet at its meeting on Monday.

It provided members with a forecast financial position for the year ending March 2025 and ‘progress against the savings targets’ of £15.9m included within the current year budget.

It stated that, at the end of quarter two, the forecast for 2024-25 is an overspend of £28.1 million.

The report to cabinet highlighted a range of additional measures that have been introduced in an attempt to ‘mitigate the overspend position’.

It also highlighted ‘recommended actions’ that are ‘all short-term measures’, which can be introduced quickly.

These include a freeze of replacing all but the most vital roles and a ban on nonessential travel.

 This could see the projected shortfall reduced.

As reported previously in the Guardian, that forecast was more than £35m earlier in the year. The threat of effective bankruptcy - section 114 notice - faces councils unable to balance the books.

Cllr Denis Matthews – who is the cabinet member for finance, assets and investments – said: “However, a full transformation programme which will fundamentally change the authority will also be considered, to continue to deliver effective services in an increasingly challenging financial environment.”

He also said that by taking ‘strong and early action’, the council aims to avoid the ‘greater risk’ to frontline services which would occur by ‘not taking this 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 to minimise the potential for disruption,” he added.

Furthermore, he stated that it is ‘important’ to take action at this stage, as the council has done in previous years, to make sure that the overspend position is ‘not realised’.

As recommended, the cabinet noted the forecast outturn as at quarter two of a £28.1 million overspend, noted the progress on delivery of savings targets as at quarter two, agreed the further actions proposed to address the current financial challenge, and noted that all directors are required to reduce their expenditure during the remainder of the financial year to ‘significantly reduce’ the current forecast overspend.