Chief Executive’s Wirral Council Budget Position Update

Just before Christmas, Wirral Council was told by the Government how much money they would be giving us for the next year, and an indication of the amount the council would receive in the following two years. This is known as the provisional Local Government Settlement. 

We now will be working through the detail of what this means for our council budget, but what is already clear is that this funding will go little way towards addressing the significant budget gap our council faces. 

Wirral Council, like many other local authorities across the country, is experiencing serious financial pressures. A Pre-Budget Report presented to the Policy & Resources Committee in November had identified a potential budget shortfall of £32.4m for 2026/27. This is not a result of how money has been spent locally although I acknowledge that some will point to decisions they feel could have been made differently. However, the challenging national climate in which councils are operating is the most significant factor impacting the position the council is currently experiencing.

Population health is the single biggest factor driving the costs this council faces and the current funding formula does not take into account the level of need or demand within communities like ours. Here in Wirral we have additional pressures of an older population than many other areas while recent years have seen significant increases in demand in children’s services. These both are services the council is legally required to provide, known as statutory services.

This mismatch between funding and demand creates a challenging environment for councils and forces difficult choices about what we do and how we do it. At the same time supporting our most vulnerable has become more complex and costly, and the growing number of older residents requires more intensive support.

This increased need for statutory services such as adult social care and children’s support is placing immense pressure on budgets. Despite recent uplifts, real-terms funding per person remains far below 2010 levels. As a result, our essential frontline services are under increasing strain as we find it more difficult to provide the additional resources.

This is not entirely new - for many years, local government has been underfunded. Despite recent increases, core funding in real terms remains significantly lower than in 2010, leaving councils with reduced resilience. At the same time, demand for services across the board has risen sharply.

There is much work to be done to ensure we are in a position to deliver a legal balanced budget for the coming year, and we remain in dialogue with Government over this. The final figures and our confirmed position will be addressed at the Budget Policy & Resources Committee.

Wirral Council remains committed to doing everything possible to protect vital services and support our residents, but the scale of the challenge cannot be underestimated. We will continue to work with partners and lobby for fairer funding that reflects the real needs of our communities.