SOLIHULL Council has applied for emergency government support in a bid to fill a multimillion-pound hole in its budget.
The council has written to the government to apply for exceptional financial support, but it has not requested to raise council tax above government approved levels.
In a bid to reduce a forecast £6.8m deficit Solihull Council has already put strict spending controls in place.
Speaking at the Audit Committee Solihull Council’s chief executive, Paul Johnson, said: “In November the forecast budget for the deficit for the year was £6.83million.
“We will be going again to cabinet in February and we expect this figure unfortunately to have increased.”
Mr Johnson told the committee there were five main reasons for the worsening situation, the impact of business rates appeals and an increase in empty property relief being awarded, increased cost of adult social care, an increase in the cost of children’s social care placements, increased cost of home to school transport for special educational needs and disabled children and increased cost of homelessness not being adequately funded through the housing subsidy system.
Details of what the authority has asked the Ministry for Housing, Communities and Local Government (MHCLG) has not been made public.
Previously councils have been given exceptional financial support from theh MHCLG in the form of capitalisation directions – meaning a council can use money otherwise ringfenced for capital resources to balance its day-to-day or revenue budget costs.
If the authorities application is successful Mr Johnson said it would be discussed at a meeting in February.
A Solihull Council spokesperson said: “We are exploring all options for addressing the Council’s financial challenges and are in ongoing discussions with the MHCLG about exceptional financial support. We have not requested the ability to raise council tax above government approved levels.”
