£1m deficit for 2010/11

Rochdale Borough Council‘s current financial forecast for 2010/11 is for a £1million deficit.

A report presented to the cabinet this evening (Monday 12 July 2010) shows the forecast overspend of this financial year at £4.9m with £3.9m funding available leaving a net deficit of £1m.

The report states: “The council is facing a very challenging time with central government making announcements regarding the reductions the council will receive in its funding for 2010/11 and future years.

“The Chancellor on 10 June announced a number of cuts in specific grants which mainly relate to the Area Based Grant. Officers are reviewing the information provided by central government to assess the impact for the council. Services will be required to manage their expenditure within the approved budgets and are reminded that action must be taken to mitigate the impact of any forecast overspend.”

Predicted over spends for 2010/11 include an overspend of £2.8m in Adult Care and an overspend of £1m on Children’s Social Care.

Councillor Keith Swift explained that this overspend relates to the number of children in care across the borough and that the council isn’t "frittering" money away but it takes Children’s Social Care very seriously.

The Leader of the Labour Party, Councillor Colin Lambert echoed these thoughts.

Cabinet member for finance, Councillor Greg Couzens was unavailable for comment at the time of publication.