Solihull Council may sell assets to address financial issues if its £48m emergency funding request is denied.
They asked for £48 million for two years. The council’s current deficit is £5.603 million. A council officer, Julie Cooper, mentioned this, pointing to issues within children’s services and corporate pressures.
Spending controls started in August, with more controls introduced in January. Councillor Sheshabhatter asked about reserve protection. The officer stated EFS can help protect reserves.
Andrew Felton, finances director, spoke about finances, saying they have good financial management. He insisted they are not a “basket case,” though things like children’s services investment create issues.
The council expects an EFS decision soon. A council cabinet will meet February 26 to discuss “plan B” if EFS fails. “Plan B” could involve large asset sales. The officer said “plan B” is riskier.
Councillor Ian Courts said Solihull had issues getting grants and relied more on local taxes. Economic growth helped them before. He mentioned many councils need EFS, suggesting system issues.
Councillor Max McLoughlin agreed with the system issues and thinks selling assets is a problem. He noted that the best assets might get sold, hurting future council budgets because of lost revenues. The meeting took place February 10.