WARRINGTON Borough Council’s revised forecast overspend totals almost £20 million – and it could ‘potentially’ need to seek ‘exceptional financial support’ from the Government.

A budget monitoring report, for period seven, will come before the cabinet at its meeting on Monday.

It highlights that in February 2024 the council approved a budget of £194.292 million for the 2024-25 financial year – which included savings targets of £15.9 million.

“Following the budget monitoring process undertaken for quarter one, which accounted for spend for the first three months of the financial year, it was decided to introduce a programme of monthly budget monitoring by exception, with a focus on the main volatile areas across the authority, over and above the standard council-wide quarterly budget monitoring process,” says the report.

“The council completed a full budget monitoring process at quarter two, which accounted for spend to the end of September. At quarter two, the council reported a forecast overspend of £28.100m.

“This report will provide a forecast at period seven, which accounts for spend to the end of October.

“The updated forecast at period seven indicates an improvement of £8.238m across the council, therefore the revised forecast at period seven is a forecast overspend of £19.862m.

“Directorates have worked with their accountancy teams to provide summaries of the updated positions in the most volatile areas of the authority, including context, explanation for change in forecast and suggestions for mitigation.”

It also says there are ‘currently significant risks associated with being able to report a balanced budget’, including taking the usable reserves position to an ‘untenable level’ and ensuring the council’s long-term financial position is ‘sustainable’.

“The current forecast creates a high risk, if urgent mitigating actions are not taken of the council needing to potentially seek exceptional financial support from the Government or issuing a Section 114 notice,” it adds.

“This risk is incorporated into the council’s finance risk register which is reported in the quarterly risk report to cabinet.”

The cabinet is recommended to note the forecast outturn, as at period seven, of a £19.862 million overspend, and to note possible ‘further mitigating actions available’ to address the current financial challenge.