Barking and Dagenham council bracing for £23m budget gap as it looks to cut costs
An East London council is desperately trying to balance the books as it braces for a £23 million budget gap for the next financial year (2024/25). Barking and Dagenham Council says the £23.3 million budget deficit is down to high inflation, increased interest rates and more demand or a change in needs for existing service users. Council officers said 2023/24 budgets have already been under 'considerable pressure' and said if the council didn't draw on its reserves for this year, it could have found itself in £26.7 million debt. However using its reserves for 2023/24 could have consequences for the next year, council officers have warned. The council has already projected an overspend of £11.6 million for 2023/24 and if this continues it will also need to be funded from reserves. In a cabinet report that will be discussed at a meeting next week (December 19), council officers said: "Using reserves in this way is only a temporary measure as reserves are a one-off sour...