Surrey CC faces a funding gap of £94m by March 2021 unless it takes drastic action to change its finances, a report by accountancy experts has warned.
The cash-strapped council called in the Chartered Institute of Public Finance and Accountancy (CIPFA) to conduct an independent review of its finances, following the departure of previous director of resources, Sheila Little.
CIPFA’s stark report says: ‘Despite repeated cost reductions, the expected increase in service pressures means that, as things stand, the council will not have sufficient reserves to meet its expected budget gap in 2019-20 unless it acts now.’
According to the figures in the report, rising cost pressures would result in a funding gap of £36m in 2018-19, rising to £86m by March 2020 and £94m by March 2021.
Speaking after the CIPFA report, Cllr Hodge said: ‘We have a duty to ensure the council remains as financially sound as possible in these unprecedented times and that’s why we asked CIPFA to do this review.
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