Wirral Council's financial crisis deepens (From Wirral Globe)
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Wirral Council's financial crisis deepens
2:41pm Friday 1st February 2013 in News By Leigh Marles, Editor
Wirral Council's financial crisis deepens
Wirral Council must find at least £28m of further cost cuts if it is to avoid producing an illegal budget.
It’s been revealed that although the authority has now indentified £39m of savings, a series of historic “bad budgets” has created a massive shortfall.
The council’s chief executive also disclosed he has had to pour in £20m from reserves this financial year alone to prevent the council going bust leaving it unable to pay the workforce or provide public services.
Graham Burgess, who joined the authority last July, told the Globe today: “This has been the most difficult budget process I have ever been involved in during my 39 years of local government service.
“There is still a large budget gap to be filled but I am confident we can do it.”
Time is running out for the town hall to produce a legal budget which must be ready for scrutiny by March 5.
The problem has been caused by “bad budgets” approved by the council during the last three years or so.
The financial blunders included adding in assumed incomes from grants and taxes which never materialised and failure to act over more than £6m of bad debt, built up largely by the adult social services department.
These and other “one-off” budget deficits come to a staggering £38m.
The council has £22m in its reserves, a portion of which it will use to clear some of the shortfall.
But it must keep £10m to £12m in the bank to cover unforeseen emergencies.
That means up to £28m has yet to be found.
It is not clear at this point exactly how officers will overcome this multi-million pound problem.
But if they fail to do so, the director of finance – considered in law to be personally liable - would be forced to issue a rare “Section 114” notice immediately suspending ALL council expenditure.
The bombshell was revealed the day after the “What Really Matters” consultation came to a close.
More than 6,200 people took part in the exercise with their suggestions for which services should be reduced and which should be spared the axe.
Around 60% of the cuts will be made from “back office” expenditure but frontline services will be hit by £17m reductions.
Some 4% of the savings will be found from redundancies – it's possible up to 700 jobs could go - and from changes to terms and conditions in staff contracts.
Over the next three years the council will be obliged to reduce its expenditure by £109m.
Results of the consultation will be discussed by cabinet on February 7.
Detailed proposals for spending cutbacks will be outlined at a further meeting on February 18.
Final decisions will be made at annual Budget Council on March 5.
Comments(24)
PaulCa
says...
4:20pm Fri 1 Feb 13
Councillors were also warned about this years ago, but put their heads in the sand and went on to set false budgets. Of course, back then, they were in full cover up mode, (and no doubt still are) telling us 'move along - there's nothing to see'..
The chickens are now coming home to roost, because you can't run away from your own compounded failures.
I wonder what other horrors will be revealed as the stones are turned over? I doubt very much that we've seen the full extent of the bad debt.
The sick-making part is that gagged, unpunished learning disabled abusers are free to get busy again in other locations; senior officers up to their necks in malpractice will stay in post, and 66 councillors will continue to polish their seats, fumble with their iPads and pocket their expenses.
The axe will fall on 'innocent' junior officers. They will take the rap and public services will be slashed even further.
As Bill Norman and others count their share of an £810,000+ "bonus", we are reminded of the banking fiasco, and how WE were made to pay for the wrongdoers' corruption.
WirralAl
says...
4:23pm Fri 1 Feb 13
Wirral council could be the first to go into administration.
What baffles me is that it comes as a surprise to some when the senior offices have been bumbling round for years followed by so many of the Councillors.
How can it get to this.
All of us have to manage our money and live on what we have.
These fools have spent millions and millions of our money and now looked and its all gone.
Astonishing!
No wounder Steve Foulkus left this hit the fan. All those years of waste Typical Labour overspending and fantasy funds!!!!!!!!!
ginger26
says...
6:24pm Fri 1 Feb 13
Hugo1008
says...
6:49pm Fri 1 Feb 13
The deep disgusting shame and disgrace overseen and encouraged by the Labour Controlled Cabinet, very much under the reign of Slimy Steve who together with Simple Simon
steady cyclist
says...
9:18pm Fri 1 Feb 13
Then there is the 25,000 quid thats paid for an upgrade of the new bosses office.
No wonder this lot have made us bust...
Growl Tiger
says...
9:18am Sat 2 Feb 13
Are we still paying his full salary?
Also can somebody tell me why, if David Green is back with “no case to answer” Chris McCarthy is still on the council's web site as interim Director of Technical Services?
Are we paying 2 people for the same job?
ginger26
says...
7:31pm Sat 2 Feb 13
bickyboy
says...
10:30am Sun 3 Feb 13
Thepleb
says...
12:10pm Sun 3 Feb 13
The day before it ends these fools bring up another £20 million they need to find...quick get another video done maybe Lucas or Spielberg would be interested but I did here they were making a new muppets film.
66 should definitely be cut down to 6-7 elected members to sit on a board with no political issues just the best interests of the Wirral people and preferably people who reside on our peninsula and would know the impact their decisions make.
Boredofthis2
says...
6:53pm Sun 3 Feb 13
steady cyclist wrote:Ha ha ha.
Last week drove past the townm hall in Seacombe, both office blocks to each side of it had windows wide open, and it was minus 2 outside,perhaps all the hot air expended made them to hot, while we continue to pay the bills fortheir heating.
Then there is the 25,000 quid thats paid for an upgrade of the new bosses office.
No wonder this lot have made us bust...
That's it. £100-odd million in the hole.
"shut the windows, you mad man!"
Boredofthis2
says...
6:55pm Sun 3 Feb 13
WirralAl wrote:What baffles me is why you're posting on here all day long and not running a FTSE100 company.
Proof again that these idiots could not run a bath.
Wirral council could be the first to go into administration.
What baffles me is that it comes as a surprise to some when the senior offices have been bumbling round for years followed by so many of the Councillors.
How can it get to this.
All of us have to manage our money and live on what we have.
These fools have spent millions and millions of our money and now looked and its all gone.
Astonishing!
No wounder Steve Foulkus left this hit the fan. All those years of waste Typical Labour overspending and fantasy funds!!!!!!!!!
Oh yeah, because you are a bit of an idiot.
PeggyPig
says...
8:06pm Mon 4 Feb 13
Growl Tiger wrote:Yep, looks like they are ! and as for DTS well who knows !!
Can somebody please tell me what has happened to David Taylor Smith Deputy Director of Finance suspended since 28 June 2012?
Are we still paying his full salary?
Also can somebody tell me why, if David Green is back with “no case to answer” Chris McCarthy is still on the council's web site as interim Director of Technical Services?
Are we paying 2 people for the same job?
antisthenes
says...
6:54pm Wed 6 Feb 13
Oh that's right; its around what its costing the Council to rent Cheshire Lines and roughly equivalent to the total cost of the loan taken out by the Council to fund the first round of redundancies a year or so ago!
Don't re-organise;just re-decorate!
Positive thinker
says...
10:11pm Wed 6 Feb 13
form
Positive thinker
says...
10:11pm Wed 6 Feb 13
form
Positive thinker
says...
10:11pm Wed 6 Feb 13
form
Witch Finder General 2
says...
10:18pm Wed 6 Feb 13
and is now down to £7 million. Dynamo that up and coming magician must be working for WBC.
antisthenes
says...
11:14pm Wed 6 Feb 13
king' Wirral now that is a name to conjure with!
RL 1952
says...
4:26pm Thu 7 Feb 13
Three new " super" directors in post but no redundancy or sackings of ineffictive managers - where is the £300K coming from to pay these super three Mr Burgess or did you think you could just sneak them in and nobody would notice????????
The sooner commissioners are brought into run Wirral the better because clearly elected members are clearly proving their total lack of ability in this direction.
Witch Finder General 2
says...
10:13pm Fri 8 Feb 13
As an ex Indian Tracker I have heard that. Senior Council Officer is awaiting their Pay Off from WBC and will be selected as a councillor in the forthcoming bi election in Claughton.
Anyone any idea which party? Many councillors come on horses.
Witch Finder General 2
says...
10:21pm Fri 8 Feb 13
Witch Finder General 2
says...
10:23pm Fri 8 Feb 13
Witch Finder General 2
says...
10:24pm Fri 8 Feb 13
bigfoot says...
3:08pm Fri 1 Feb 13
Time to take the empties back!