Increased demand and soaring costs blamed for Cumberland council's £29m overspend

The Government has been accused of pushing local authorities to the "brink of bankruptcy" after "a decade of neglect".

Cumberland council has revealed it is facing serious financial problems after forecasting £29 million overspend.

It is thought that growing demand for care services and increasing number of children going into care has also driven costs up.

The local authority has said they are "working hard" to control escalating costs but acknowledges that the situation will be "very demanding" years to come.

A spokesperson for the council has said £17.5m of reserves will be used in a bid to rectify the situation.

An expected payment by government would also reduce the deficit to continue to deliver "high quality services" to residents.

This comes as many local authorities continue to struggle with unsustainable budgets, aging populations and growing demand on services.

Councillor Mark Fryer, leader of Cumberland Council, said:“We know that we face significant challenges in the coming years. Some of which we can offset from the development of our transformation plan and implementation of the new operating model.

“But we simply have to acknowledge the need for public service reform in this country. We need a new deal for local government.

“After more than a decade of neglect and austerity, the Government has to wake up and address the future of council funding.

"The existing public sector funding formula doesn’t work for areas like ours and needs to be overhauled. Pressures, particularly on councils with social care responsibilities, are pushing many well-run councils to the brink of bankruptcy."

Labour councillor Barbara Cannon, the council's executive member for financial planning and assets, said: "The combination of years of funding cuts from central government, rising costs, and surging service demand has created a formidable challenge for local authorities like ours.

"We are constantly pressed to do more with less.

"Our primary goal is to ensure every taxpayer's pound is spent wisely to deliver essential services across Cumberland."