In February 2024, the council approved a budget of £194.292 million for the 2024-25 financial year, which included savings targets of £15.9 million.
At its meeting on Monday, the cabinet was updated on the budget forecast position at period eight, which accounts for spend to the end of November 2024.
At period seven, the council reported a forecast overspend of £19.862 million.
According to a report to cabinet, the updated forecast at period eight indicates a ‘deterioration’ of £1.042 million across the council and, therefore, the revised forecast at period eight is a forecast overspend of £20.904 million.
During the meeting, Cllr Denis Matthews – who is the cabinet member for finance, assets and investments – said setting a legal, balanced budget has ‘never been harder for any council’.
He added: “Far too many have been forced to issue Section 114 notices in recent years and a significant number are expected to require exceptional financial support from the Government to be able to balance their 25/26 budget – the positive news is that Warrington is not one of them.
“I’m thankful that the new Labour Government has listened to the concerns raised by the LGA and has taken serious steps to shore up the local government sector, both immediately into the 2025/26 budget period and beyond.
“The options available to the Labour Government are however limited because of the financial inheritance delivered to them by previous Tory mismanagement.
“The path ahead will not be without difficulty, but working together with national Government in partnership is the answer.
“Sometimes it isn’t just about getting more money but about being supported by Government, transforming how we do things within our own council and being clear and honest with our residents about what is possible with funding available to us.”
As recommended, the cabinet noted the forecast outturn, as at period eight, of a £20.904 million overspend – and noted ‘possible further mitigating actions available’ to address the current financial challenge.