Cost of living crisis set to hit Walsall Council with £14 million extra needed to balance the books

A report to the authority’s cabinet showed emerging pressures such as increased energy bills, spend on contracts and third parties such as contractors and a rise in the wage bill would need urgent attention.

But bosses said they were confident the council’s track record in setting balanced budgets would enable them to deal with the issue as well as ensuring help and support is made available for struggling residents.

The total estimated cost of living impact for the 2022/23 financial year is £14.42 million with £4.08 million of that due to energy and fuel inflation.

The contracts/third party spend is anticipated to increase by £3.88 million while the total pay costs could increase by more than £6 million subject to agreement.

At a meeting on Tuesday cabinet members heard how the majority of these extra costs would be covered by using reserves.

Deputy leader Adrian Andrew said: “We are clearly in a serious situation currently but, with the officers we have and the cabinet, we are certainly in a position to handle those difficult decisions and situations head on.”

Councillor Garry Perry, deputy leader of resilient communities, added: “We have a track record of managing the council’s finances very well and I have no doubt or any disbelief that that won’t continue.

“I know all efforts are being made to tackle the budgetary situation to ensure it balances in accordance with all expectations.

“The cost of living increase is having an impact. It’s having an impact on our services, partner organisations and, more importantly, it’s having an impact on our communities and the people we represent.

“I think, despite the Westminster noise, this cabinet and council will do all it can to continue to access help and support for our vulnerable residents across Walsall to ensure nobody is in a position where they can’t seek help and get it. That’s the priority.”

The report also highlighted forecast overspend in social care with both children’s and adult services seeing increased demand.