Like many councils up and down the country, Cumberland Council is working hard to control escalating costs in services such as Adult and Children's care, whilst simultaneously managing the transition to the new unitary authority. In the Council’s finance report for quarter one, it acknowledges the scale of the financial challenges ahead.
In papers published today, ahead of the Council's Executive meeting on 3 October, Cumberland Council outlines its financial situation as "challenging," echoing the concerns shared by many councils struggling with unsustainable budgets and growing demand on services.
Initial financial forecasts suggests that services provided by the Council could cost an additional £28.9 million. Following a rigorous review to identify savings and the possible support from government through the transition process, the potential overspend will significantly reduce to £17.5 million, which will need to be funded through its reserves.
The escalating costs are mainly attributed to the increasing and ongoing demands within Adult and Children's care services. The Council has a legal obligation to fund these services, which have seen an unprecedented rise in both overall demand and complexity of need since the Covid-19 pandemic. One of the key challenges faced by the Council is the mounting reliance on social care agency staff, a situation common to many local authorities grappling with recruitment difficulties.
When the initial budget was agreed, the Council identified numerous financial pressures which included having to duplicate a number of staffing positions. This was as a result of the local government reorganisation process which saw county council roles being split between the new Cumberland Council and Westmorland and Furness Council on 1 April 2023. The Council are now advancing plans to transform and restructure its services to bridge the funding gap and make further efficiencies.
Councillor Barbara Cannon, Cumberland Council's Executive Member for Financial Planning and Assets, said:
“The combination of years of funding cuts from central government, rising costs, and surging service demand has created a formidable challenge for local authorities like ours. We are constantly pressed to do more with less.
“We are committed to building upon the transformation and improvement initiatives already underway as part of the local government reorganisation process. Our primary goal is to ensure every taxpayer's pound is spent wisely to deliver essential services across Cumberland.”
Councillor Mark Fryer, Leader of Cumberland Council, added:
“We know that we face significant challenges in the coming years. Some of which we can offset from the development of our transformation plan and implementation of the new operating model.
“But we simply have to acknowledge the need for public service reform in this country. We need a new deal for local government.
“After more than a decade of neglect and austerity, the Government has to wake up and address the future of council funding. The existing public sector funding formula doesn’t work for areas like ours and needs to be overhauled. Pressures, particularly on councils with social care responsibilities, are pushing many well-run councils to the brink of bankruptcy.
“The demand on social care services grows daily and is compounded by rising inflation and interest rates which intensifies our financial complexities. Whilst we now have a clearer understanding of the financial legacies from our four predecessor councils, we are acutely aware that we have work to do but the local government sector needs national help.
“As a new unitary authority, we have integrated services on an unprecedented scale. We have a comprehensive plan for Cumberland, but we recognise that the next few years will be very demanding. Our primary objective is to continue to deliver high quality services to our residents. We will explore all opportunities and work with willing partners to ensure this happens.”
More details can be found on the Cumberland Council website.