THE increasing cost of children’s services and homelessness have added to a projected budget overspend by Thurrock Council of £3.1 million.
The quarter one forecast for Thurrock Council’s General Fund for 2024/25 is a £2.1 million overspend and a “total service position net projected overspend of £3.1million” cabinet has revealed.
The council is battling to overcome a legacy of debts which left it bankrupt and at one point owing £1.5billion thanks to reckless investments.
Speaking at a cabinet meeting on Wednesday, Sara Muldowney, councillor responsible for resources, said: “The overall position is showing significant pressures in Place with increasing demand for homelessness support and the children’s services budget. Costs must be brought back within budget and work continues in each directorate to manage what are in the main are national budget pressures being felt by every local authority.”
Ms Muldowney said action was being taken to “manage pressures”. She said: “For pressures associated with the homelessness crisis the place directorate will be using £965,000 from the covid contain outbreak management fund to partly offset the £1.9million homelessness overspend. This is a legitimate use of the funding which if unused will have to be paid back.
“Children’s services faces challenges with rising placement cost, numbers costs and complexity of cases. To support this the directorate is working to revue these cases and manage costs.”
Ms Muldowney added: “In adult social care we are currently underspending. However, as we know the winter period could bring additional pressures, particularly around complex placements and hospital discharges.”
In July the authority said it will need £206.7 million from the Government to balance its 2023/24 budget.
The council originally estimated it would £180.2m as part of the 2023/24 agreed budget, however, it now stands at £26.5m more than this.
The Government appointed commissioners to oversee the council following the huge, ill-judged investments in green energy companies.
