Portsmouth faces £23m drop in funding from government over the next four years, finance boss warns
Chris Ward says the authority is still awaiting a decision over how much cash it will get up to 2020 – but knows it will be £23m worse off regardless of how much it gets.
And he criticised the government for putting on the table a ‘one-sided offer’ – as the council has been told it may only get a lump sum to spend on public services and no alternative has been offered.
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Hide AdMinisters are expected to announce within days how much the city, and other councils across the region, could receive towards future revenue budgets – covering day-to-day running costs.
Addressing members of a council scrutiny panel during a presentation of the authority’s spending position yesterday, Mr Ward said: ‘We’ve been given an offer from government of a four-year settlement.
‘The difficult part of that at the moment is, we have a rough idea of how much we’ll get if we say yes, but we have no idea if we say no.
‘So we have got a one-sided offer at this stage.’
He added: ‘It seemed the government was expecting local authorities to snap their hands off, and were surprised when local authorities asked what the alternatives are. So I think they are thinking about that now.’
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Hide AdBut the council’s budget could come out underspent by £5.7m by the end of the 2015/2016 financial year.
That’s despite a report revealing the children’s and adult social care services departments were spending £3.7m more than they should have been.
A proposal is to be considered by the Tory cabinet to put £1.5m of the £5.7m underspend into capital projects – money used to fund schools, buildings and roads.
Another £1m could be set aside for general spending, reserves could be increased by £1.5m and £1.7m set aside to cover savings in the next financial year.