The Children’s Services budget in Sefton is heading for an overspend of £17 million this year.
It leaves a substantial hole in the council’s finances ahead of councillors coming together to set this year’s annual Budget.
The meeting will take place at Bootle Town Hall on 2nd March 2023.
Sefton Council Leader, Cllr Ian Maher, blamed a combination of factors, including inflation rises, growth in staffing costs, and higher accommodation costs.
Cllr Maher was responding to a question by Sefton Conservative Leader, Mr. Mike Prendegast, about the situation.
He replied: “The overspend has been driven by a number of events that have occurred since the budget was approved by Members in March 2022/23.
“They include the impact of inflation on accommodation costs, the increased accommodation cost charged for by external providers who are often private equity backed and the exponential growth in staffing agency rates that has seen the traditional workforce move to these organisations.
“All of these aspects are affecting all councils in the country and have been reported extensively to central government for years with no resulting action to stabilise the relevant markets or the right amount of funding coming to councils.”
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