Rising child costs blamed for £15m bailout plea
PA MediaRising children's social care costs have been partly blamed for a council's plan to ask for a £15m government bailout.
A report prepared ahead of Redcar and Cleveland Council's cabinet meeting next week said the Labour-led authority also planned to consult on raising council tax by 4.99% - the maximum allowed without a referendum.
The document said the council had experienced "sustained and significant budgetary pressures", driven primarily by escalating costs in children's social care.
Labour councillor Neil Bendelow, who sits on the resources committee, said: "It is the case that this council has been underfunded and we are now at a pinch point."
The report said the council had already made cuts of £20m over the last four years and additional government cash, to be repaid over an extended period, would be a "vital bridge" to a "more stable financial position".
It added: "The government has recognised that some local authorities need additional temporary support whilst the work to address the failings of the previous funding system are addressed."
Future pressures
One sticking point is that – assuming the council is successful with an application for financial support – approval and the sum allowed is not expected to be known until February.
This is likely to leave the council facing a tight turnaround in terms of finalising the budget for the next financial year, reports the Local Democracy Reporting service.
Once a statutory consultation with residents is over, the 2026/27 budget and council tax level is due to be recommended by the cabinet to a meeting of the full council on 26 February.
Phil Winstanley, the assistant director of finance said there was "some risk" that the council may have to use government financial support again in 2027/28, but this would be kept under review.
He added the request would be at the "lower end" in terms of the money sought, based on what some authorities had applied for previously.
