Latest Teesside headlines straight to your inbox Subscribe Thank you for subscribing See our privacy notice Invalid Email

Experts have warned a Teesside council is staring down the “most difficult decisions it has ever faced” to balance its books.

The caution came in a report by auditor Mazars for Stockton Council as the firm offered its view on the authority’s finances and how it is managing its risks.

The external auditor gave the council the thumbs up for its financial statements - judging they gave a “true and fair view” of its financial position and “proper arrangements” were in place last year to manage risks.

But the expert report prepared for Monday’s audit and governance committee gave an ominous forecast of years ahead if the government didn’t stump up more money.

The report added: “It is clear that the council faces some of the most difficult decisions it has ever faced in balancing the budget going forwards.

“The position beyond 2019/20 is very uncertain as much depends on the outcome of the comprehensive spending review, fair funding review and the measures that will be taken in relation to the future operation of the business rates system.

“However, it seems unlikely that the overall financial position for the council will improve sufficiently to allow it to defer any of the difficult decisions needed.

“Decisive action to bridge the budget gap over the medium term is a key priority for the council.”

The government pledged to give councils an extra £1.5bn for social care next year in a spending review earlier this month - but £500m of that will be coming rises in council tax.

Meanwhile, the “fair funding review” - designed to overhaul how much councils receive from business rates - has been pushed back to 2020/21.

Council leaders were told the authority was facing a £1.3m gap at their latest cabinet meeting due to pressures on children’s services.

But bosses are confident the council will be able to balance the budget come the end of March next year.

The letter from Mazars also showed Stockton Council had reserves available to “minimise impacts” while it tries to find money to meet the gap.

Overall, the auditor judged the council had put in place “proper arrangements to secure economy, efficiency and effectiveness” and offered its seal of approval.

Chairman Cllr Barry Woodhouse was pleased with the assessment - but warned there was “a lot of uncertainty” to come in the next year.

He added: “Again, it’s another good audit for Stockton - it’s not surprising because we know it’s a well-run authority.”

The external audit letter will go before council leaders next month.