Southampton City Council saved from effective bankruptcy
The cash-strapped authority has been given emergency support
Last updated 1st Mar 2024
Southampton City Council has been saved from effective bankruptcy.
The cash-strapped authority will be able to balance the books because of emergency government support.
It was facing a ÂŁ39m shortfall in its budget.
The council has been given permission to generate money by selling assets like buildings or using loans.
Southampton City Council leader Lorna Fielker, said: "This is not a government bailout, its permission to use Southampton’s own money in a different way.
"This demonstrates that the work the Labour administration has been doing, initially led by Cllr Kaur, has been proven right and judged by officials as the correct way forward.
"However, the fact is, this is only needed because of the huge cuts to our budgets since 2010.
"Over ÂŁ500m have been stolen from local residents, that could have been spent on things that people value most in our communities.
"The heart of local government has been ripped out by this Tory government and every person who lives and works in Southampton has been impacted by it."
Councillor Daniel Fitzhenry, leader of the Conservative group on the city council said: "After months of denial the truth is out - Labour in Southampton have needed a ÂŁ120m bailout facility from the government for destroying the finances at the council in only 22 months since they took back office here in Southampton.
"Council tax, council rents, Itchen bridge fees and care charges have already risen, but now Labour need to save ÂŁ40m over the next 12 months which will mean the Labour council likely selling council buildings below market prices and needing to make redundant 500 to 1000 members of council staff to balance the books.
"This mess is totally unnecessary, had Labour run the city properly, as we did In our year between May 2021-May 2022, the pain and difficulties coming would not be happening."
"This is a very very sad situation and time for our great city"