AFTER months of trying to wrangle a budget for the next financial year and earmarking around 500 council jobs to be axed, Thurrock Council is still almost £4 million of savings short of meeting its target – a committee will be told next week.

And with ever-changing directives from government and the impact of Covid-19 still to be fully assessed it is likely the shortfall the council needs to find will rise.

And an unknown factor remains the council's U-turn on its controversial borrowing strategy. The council has anticipated drawing in millions of pounds as a return on its investments in renewable energy bonds and shares but bad choices, dodgy advice from disreputable consultants and a change in the market have wreaked havoc on the council's showcase strategy.

On Tuesday (16 November) the council's corporate overview and scrutiny committee will be presented with a report by corporate director of resources and place delivery, Sean Clark, detailing the authority's medium term financial strategy and budget proposals.

Mr Clark will tell the committee: "The most recent position presented to Cabinet in September 2021 highlighted a budget gap of £34.3m over the next two years alongside a summary of the proposed actions to deliver savings to address this gap.

"This report sets out the latest position to the committee and highlights there is a remaining gap of £3.9m, which is also subject to the delivery of significant staff savings.

"The financial challenge faced by the Council will be further challenged by the longerterm impacts of Covid-19, which includes significant demand increases in children's and adults' social care; an issue growing across the entire local government sector.

"Furthermore, the Council is 'unwinding' the previously agreed investment approach, and hence investments that were planned and agreed have been removed and existing investments will not be replaced. The removal of this funding support mechanism increases the funding gaps faced by the Council over the short to medium term."

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Mr Clark tells members: "Members will be aware that one aspect of balancing the 2021/22 budget was to target savings of £4m from vacant posts.

"The medium term financial strategy then assumed that the temporary saving would be turned into a permanent one through the deletion of, an average, 100 posts.

"As staff costs are by far the largest of the council's budgets, it is obvious that a higher target than £4m needs to be achieved when considering the budget gap.

"Officers are currently working on an assumption of reducing staff-related costs by £10m for each of the next two years. At an average oncosted salary, this equates to a 500 full time equivalent reduction over the two years. That represents circa 25 per cent of the current workforce."

The full report can be read here.