A mounting deficit caused by the coronavirus pandemic could force one Merseyside council to take drastic emergency measures, a senior officer warned.
Wirral Council’s finance chief Shaer Halewood said the authority was heading for a £22m overspend this year.
Ms Halewood told councillors at last night’s meeting of the Policy and Resources Committee that the council must act to bring the budget back under control.
If this does not happen, Ms Halewood warned she could be forced to issue a section 114 notice, an emergency order that would immediately impose a ban on all spending other than the most basic statutory services.
She added that this can be avoided if the council successfully applies for a ‘capitalisation directive’ from the government’s Public Works Loan Board, a loan which would help to compensate the council for losses incurred during the pandemic.
However, Ms Halewood noted budget problems could get even worse next year. The borough’s overspend could be as much as £60m, due to pressures in areas including social care for both adults and children.
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Ms Halewood's comments come after Wirral Council's leader Janette Williamson wrote a message to residents last month, which said the authority's “massive financial black hole” meant “everything that the council does is being reviewed” as part of a “massive reappraisal” of council services.
Conservative councillor Jeff Green said he supported the council’s move to seek the loan, but noted he was criticised for making a similar move during his time as leader of the council several years ago.
Cllr Williamson said the budget was on a sound footing until the coronavirus pandemic broke out.
The Labour councillor called on members from all sides of the chamber to work together to tackle the most serious situation she had seen in her three years of involvement in the budget.
Fellow Labour councillor Christine Spriggs said the authority needs Chancellor Rishi Sunak to deliver on his promise to do whatever it takes to get the country through the crisis.
She added that Wirral Council will need to be “more interventionist” and do more to help its residents in the times ahead, as people will need greater support due to the huge impact of the virus.
