22 milllion 'black hole' in London council's finances sparks tax hike and spending cuts warning

"The gap means the council is considering raising council tax by almost 5%, while looking for extra income and spending cuts elsewhere. Council leader Dominic Twomey said the council's situation was incredibly difficult. He pinned the blame on 14 years of austerity and a lack of funding for local government. The council launched a public consultation on its spending yesterday (Wednesday 10th) as it begins work to set next year's budget."

"Papers presented to council leaders this week say that current predicted spending next year is some 21.8m more than the council will have funding for. They say that this is made up of an increase in 23.1m, offset by 1.9m of savings that council bosses have already planned. The papers shows that the main increase is predicted in adults social services where spending is predicted to rise by almost 10m. Spending on children's services and special educational needs is expected to rise by almost 6m."

Barking and Dagenham Council faces a predicted £21.8m shortfall for next year. Predicted spending rises total £23.1m, offset by £1.9m of planned savings. The largest increase is in adult social services, rising by almost £10m, with children's services and special educational needs costs up by almost £6m. The council has launched a public consultation and is considering raising council tax by almost 5% while seeking extra income and spending cuts. Council leader Dominic Twomey attributed the situation to 14 years of austerity and chronic underfunding of local government. Temporary accommodation spending is not expected to rise next year.

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