The City of York Council’s “difficult financial position” may lead to staff reductions, according to a council document.
Following reports that the council is due to overspend by £11.4m next year if “immediate action” isn’t taken, the council executive will be asked to vote on a plan for the next four years on 14 September.
A report of recommendations to the executive shows the financial strategy “will be refreshed” to align with the new plan.
It reads: “The draft council plan is a statement of intent, with actions taking place only once funding has been secured.
“Achieving some priorities will require consideration of reducing/stopping funding for lower priority areas, and exploring innovative ways of increasing income, together with a focus on securing external grant funding.
“The difficult financial position will mean we will need to look carefully at how all our resources are deployed and this includes our employees.
“We will continue to support our staff, seeking wherever possible to achieve staffing reductions through reductions in interim staff, and through vacancy management wherever possible.”
‘Genuinely confused’
Opposition group councillors have been quick to blame Labour for the problem.
“We knew there would be overspending in adult social care,” Liberal Democrat deputy leader coun Paula Widdowson said.
“But we managed this all the way through the pandemic and when inflation was at its highest.
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“I am genuinely confused.”
But the executive member for finance released a statement this week saying: “The changes being made now are extremely difficult, but they are essential if the council is to avoid issuing a legal notice to say it can’t fund running its services in future, as other councils have done.
“York needed new leadership to take these tough decisions to put the council back on a sustainable financial footing, and that is what Labour will do.”
The City of York Council’s executive committee will meet on Thursday (14 September).