The Budget Continues to Spin Out of Control

The Labour Group has recently been lucky to have met twice. Amidst all of the items up for discussion, the looming financial crisis caused by a massive overspend on temporary accommodation was not mentioned.

Finding an extra £25m was evidently not of sufficient importance.

Readers will recall that the Director of Resources warned councillors that the council is facing difficulties and will have to find a minimum of £25m in savings. On top of this they planned to sell off £16m worth of assets. This was a plan that does not yet seem to have received the approval of government. 

This is how the bleak position was reported to Overview and Scrutiny in the Budget Performance Quarterly Report.

Newham are not alone, indeed, in London terms, they are middling in the level of their overspends.

On top of the problems with temporary housing, Adult Social Care overspend has gone up from £2.9m to £3.5m. The report notes that the overspend in Children’s services has gone over-budget, by £5.3m.

The general reserve stands at £11m.

Where do you think they will find all the extra cash they need next year?