'All council budget savings will be made' - leader

BBC Council leader Lee Carter sat behind a black laptop in an office, wearing a navy blue suit and light blue shirtBBC
Lee Carter was managing director of AFC Telford United between 2013 and 2016

All budget savings needed at Telford & Wrekin Council will be made this financial year, its leader said.

Lee Carter, who became leader of the Labour-run authority in July, took control of a council facing significant budget challenges.

This year alone it has to meet a funding gap of £17.5m.

Carter, who replaced newly elected Telford MP Shaun Davies, said the council was "managing its finances robustly", while continuing to find new ways of raising revenue or being more efficient.

Figures compiled by BBC News found the authority has one of the largest funding gaps of all British councils, when its savings target is compared with its net revenue budget for 2024-25.

The council needs to reduce its expenditure by 11%, the ninth highest amount in Britain.

"We've become an organisation that is far slicker, with far fewer employees and we're having to do more with less," said Carter.

"We'll absolutely make our savings and there will be no hint of bankruptcy because we're not in that realm at all. We manage our finances robustly.

"I think we've done our best to make sure the impact on residents hasn't been too great, although they will have noticed some differences.

"An example being home to school transport, which has become more efficient," he added.

The Conservative group on the council has raised concern about the authority's "mounting debt pile" and the "future burden of interest payments", which accounted for 8.9% of the net revenue budget in the last financial year.

Carter said the council was borrowing to invest, with assets such as housing and infrastructure generating about £40m a year.

Social care demand

Neighbouring Shropshire Council has warned that it is "unbelievably close to bankruptcy", with many councils struggling with funding pressures.

Telford & Wrekin has delivered savings totalling £157m since 2009-10.

But budgetary pressures have worsened in recent years due to increased costs caused by inflation, and a rise in the demand for services, especially in both adult and children's social care.

Council tax was raised beyond 2% in April for the first time since 2021-22, to 4.99%.

The additional income was used to help boost its social care budget, which increased by 12% this financial year.

"We've maintained the lowest council tax for many years in the West Midlands and we'll continue to take that approach," said Carter.

"Even if we do increase council tax again, every penny has got to go into protecting and safeguarding young people and looking after old people," he added.

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