The leader of Solihull Council has pledged the authority will 'rise to the challenge' of setting a legally balanced budget this year, despite confronting a significant forecast deficit.
Mounting Financial Pressure
Financial concerns have persisted throughout the year for the cash-strapped council, which faced similar difficulties in 2025. On that occasion, it successfully applied for and received emergency financial support from the government. All local authorities have a legal obligation to pass a balanced budget, ensuring annual expenditure does not surpass income.
To manage the situation, Solihull Council has maintained stringent controls, including vetting all non-essential spending and recruitment decisions. A paid resignations scheme was also implemented last year to reduce staff numbers. Despite these measures, senior councillors were previously informed of a forecast debt of £2.7 million against the council's core budget.
Opposition Questions Service Protection
At the cabinet meeting on Thursday, 15 January, Green Party opposition leader Councillor Max McLoughlin directly challenged the council's leadership. In a formal deputation, he asked how the authority planned to maintain vital services while achieving a legally balanced budget.
"The council’s budget is fast falling behind the needs of residents and will not be meeting the pressures placed on services," Councillor McLoughlin stated. He acknowledged improvements in children's services, which recently received a 'good' Ofsted rating, but stressed that no one wanted to see standards slip again. He also highlighted adult social care as an ongoing and significant challenge.
Leadership's Response and Next Steps
In response, Council Leader Karen Grinsell acknowledged the authority had been underfunded for years but reaffirmed its commitment to delivering services. "We are all working to address the financial challenge," she said. "We are still delivering services, as you rightly say we have just had our Ofsted good outcome. We rise to the challenge though."
The full budget proposal will be presented to the Resources and Delivering Value Scrutiny Board before going through cabinet and a full council meeting. Opposition groups will have the opportunity to propose alternative budgets at the full council stage. The situation echoes comments made in September by Andrew Felton, the council's Director of Resources, who said there would have been 'no way' to balance the previous year's budget without the government's emergency support.
Cabinet member Councillor Andy Macviecitz sought to offer reassurance, stating: "This view services will be cut – children’s services will still get their funding, social care will still get funding, the rubbish will still be collected." The coming weeks will reveal the specific measures proposed to close the multi-million-pound gap.
