Suffolk councils - how do they stand up financially?
One in four councils may need a Government financial bailout — how is yours doing?
An anonymous survey of 195 council chief executives in England published by the Local Government Association (LGA) shows one in four local authorities are very or fairly likely to need a financial bailout from the Government in the next couple of years.
Although different tiers of councils responded, the four biggest areas of concern identified in the survey were adult social care, children's social care, special educational needs and disabilities, and home to school transport.
With Suffolk councils now well into drafting their budget proposals for the next financial year, some of the financial pressures outlined in the survey are bound to come up.
But where do the latest predictions place your council financially?
Suffolk County Council
Despite last year's first-quarter financial report showing a significant overspend of just over £22 million, this year's iteration has shown a much better picture, with the council predicting a £2.5 million underspend by the end of the financial year.
The extra income has come from an increase in business rates due to the council this year totalling £3.5 million.
Its reserves, on the other hand, are still forecasted to reduce by £22.2 million, to just under £158 million in total.
Similarly, the Dedicated Schools Grant (DSG) reserve is now forecasted to face a £101.2 million shortfall.
As it stands, the council can accumulate an overspend of the DSG reserve through what is known as 'statutory override' until March 2026 without it affecting their own books, at which point they will have to cover the shortfall through their own reserves.
West Suffolk Council
In February, the council presented its budget proposals for the financial years spanning from 2024 to 2028, outlining plans for a two-year balanced budget.
From the 2026/27 financial year, the council is forecasting a budget gap of £5.71 million, growing to £6.28 million the following year.
The local authority has also made best and worst scenario forecasts, which have the council facing a £490,000 gap at best and a £8.98 million shortfall at worst in 2026/27 — for 2027/28 the best case scenario estimate is a £980,000 gap and £9.62 million at worst.
In November, West Suffolk Council is due to provide further updates on assumptions and proposals for setting the budget for the next financial year.
Ipswich Borough Council
Ipswich councillors received an uncomfortable update on the council's finances during a full council meeting on September 14.
The first quarter report showed a worsening of the council's position with its financial position now revealing a £23 million budget gap over the next four years — that's £5.5 million worse than when the current budget was set in February.
During the same meeting, councillors approved a savings package meant to deliver between £13 million and £16 million in savings, but warnings were issued further tough decisions would have to be made in the future.
At the time of writing this report, the Council has £13.3m of earmarked reserves available which can only be used for specific things.
Babergh District Council
Earlier this month, members of Babergh's cabinet were also presented with a gloomier picture than they had initially predicted, with a forecasted deficit of just over £1 million in contrast to the £132,000 predicted in February.
Although the council had set aside £2 million in February as part of a resilience reserve to help plug the predicted £6.7m gap over the next four years, the current extra predicted pressure would mean nearly half of that money would have to be used.
Also earlier this month, cabinet members decided to transfer £538,000 from its Expected Credit Loss reserve to bolster its financial resilience pot to just over £2.4 million.
Mid Suffolk District Council
A much brighter picture was painted for Mid Suffolk cabinet members, however, with the latest report for the first quarter performance showing a forecast surplus of £6.3 million — that's £1.2 million better off than initially predicted.
Its financial resilience pot has also seen a £538,000 boost, now totalling £1.5 million.
East Suffolk Council
There hasn't been a recent update to the council's financial position against its budget.
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