William Eichler 05 September 2023

Stoke-on-Trent Council at risk of bankruptcy

Stoke-on-Trent Council at risk of bankruptcy image
Image: Golden Dayz / Shutterstock.com.

Stoke-on-Trent Council has warned that it is on the verge of bankruptcy and called for a ‘national overhaul’ of social care funding.

The council is facing a budget gap of £8.5m this year which will leave the authority at ‘significant risk’ of not being able to set a balanced budget next year.

The main pressures on the council’s budget are children’s and adult social care, and the proposed pay offer for local authority staff.

Cllr Alastair Watson, cabinet member for finance and corporate services, said the current administration had inherited ‘a very perilous financial situation’.

He said: ‘We’ve hit the ground running in these four months – getting on top of illegal dumping and clearing a longstanding fly-tipping backlog that’s been plaguing residents; prioritising early intervention and prevention services such as a new family hub model to provide better, more sustained social care; delivering a five-year investment programme into council housing; and tackling anti-social behaviour in our communities.’

‘We’ve done this while insisting on tight spending controls in response to the financial position we’ve inherited. So far, we’ve reduced a potential £13m budget gap down to £8.5m.

‘But as it stands, with record numbers of children in care, with high inflation that increases the unit cost of care for children and adults along with the cost of so many goods and services that we purchase for the benefit of residents, we are spending more money than we can afford – we cannot sustain services like this.’

If this article was of interest, then check out our feature, 'Preventing future Section 114 notices'.

SIGN UP
For your free daily news bulletin
Highways jobs

Vocational Trainer - First Aid - South Essex

Essex County Council
Up to £18.38 per hour
Vocational Trainer - First Aid - South EssexTemporary, Part Time£18.38ph/£136.04 Per Day (PAYE)Location
Recuriter: Essex County Council

Learning Support Lead

Essex County Council
£29467.0000 - £34667.0000 per annum
Learning Support LeadPermanent, Full Time£29,467 to £34,667 per annumLocation
Recuriter: Essex County Council

Senior Support Worker - D-BIT, Connecting and Uniting Families

Essex County Council
£26284.0000 - £33256.0000 per annum
Senior Support Worker - D-BIT, Connecting and Uniting FamiliesFixed Term, Full Time£26,284 to £33,256 per annumLocation
Recuriter: Essex County Council

Approved Mental Health Practitioner

North Yorkshire Council
£42,839 to £47,181 per annum, Plus £3,900 market supplement
This is an exciting time to join us as we review and shape services to meet the future needs of people across North Yorkshire and the City of York. Selby, North Yorkshire
Recuriter: North Yorkshire Council

Approved Mental Health Practitioner

North Yorkshire Council
£42,839 to £47,181 per annum, Plus £3,900 market supplement
This is an exciting time to join us as we review and shape services to meet the future needs of people across North Yorkshire and the City of York. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner