Growing council budget deficit due to 'pressures on service, not mismanagement', leader insists

Peterborough City Council’s (PCC) budget deficit is not because of “mismanagement” of its finances, but due to “pressure of service on the council”, its leader has insisted.

Cllr Wayne Fitzgerald (Conservatives, West) told his cabinet at a meeting this week that inflationary pressures as well as added strain on PCC’s social care provision for children is largely to blame for the budget gaps the council is facing.

Next year, the council is now facing a £5.3m gap – up from the £5.1m projected in its summer budget reports – rising to a £10.6m gap the year after.

Children’s services director, John Gregg, said at the meeting that the situation facing his sector is “unprecedented”, with cost of living pressures and the effects of the pandemic creating a “perfect storm” of factors increasing demand for support.

Just one child’s can cost the council upwards of £1m, Cllr Fitzgerald added.

New cabinet members appointed

The leader continued that one of the ways in which he will ensure that children’s services are given the council’s full attention is by appointing a new cabinet member for the sector.

Cllr Jackie Allen (Conservatives, East) will take up the role of cabinet member for children’s services and education, he announced, having been appointed as an advisor to this role earlier this year.

Cllr Ishfaq Hussain (Conservatives, Dogsthorpe) will also become a full cabinet member, he continued, with his remit being health and social care.

Cllr Fitzgerald had planned to split the previous children’s services, education, skills and university cabinet member role between Cllr Lynne Ayres (Conservatives, West) and Cllr Ray Bisby (Peterborough First, Stanground South) earlier this year, but the latter’s resignation from the Conservative party scuppered these plans.

Interim arrangements were made which included Cllr Fitzgerald taking on health and social care before the latest promotions.

Cllr Ayres remains responsible for Peterborough’s university.

'Undercurrents and rumblings of instability' remain

But while changes to governance and cost cutting measures are underway, Cllr Fitzgerald made it clear that he doesn’t believe the council is on completely sure footing yet.

There is “political uncertainty which seems to have raised its head again,” he said at the meeting; later also referring to “undercurrents and rumblings of instability” on top of the increased financial pressure.

It may, then, be a little “premature” to suggest that the council could be deemed ready to shed its increased oversight by the end of the year, he said.

Since summer 2021, an independent panel has monitored PCC’s governance and finances and made recommendations for improvements after it requested exceptional financial support from the government.

Its final report was due at the end of the year, but already council executives have suggested that increased oversight may continue for slightly longer.