West London council warns of £19 million budget blackhole next year and worse in years to come
A West London council has warned of almost £19 million blackhole in its budget next year if the government freezes funding and axes an adult social care topper, a council report has revealed. Kensington and Chelsea Council said the budget deficit could grow to £32 million by 2027/28 if the Treasury does not align council funding with the forecast rate of inflation or continue provide additional adult social care grants. If both measures are met then the deficit is expected to hit £9.4 million in 2025/26 and £21.2 million by 2028. It comes as an updated budget report shows the council broke even in the latest financial year. It predicts the council's finances would be “adversely impact[ed]” if cost pressures associated with housing people in temporary accommodation and other services continue to rise and if inflation and interest rates fall slower than expected, and if savings targets aren’t met, the report revealed. The document read: “Whilst the additional funding announced i...