Hertfordshire County Council says it is facing a shortfall of more than £20 million – blaming inflation on the significant deficit.

The council says its latest forecast of finances estimate a shortfall of £23.5 million for the 2022/23 budget which further pressures likely to continue into the coming years.

A statement says services are costing “a lot more” to provide – for example, an extra £2.3 million a year to keep streetlights on represent a cost increase of 60%.

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The council’s Conservative leader, Richard Roberts, said: "Financially, the council is a very well managed organisation, making a great start to the financial year with a balanced budget.  Last year we came out of the pandemic able to offer a significant Covid recovery package supporting many residents and businesses across the county and investing in services our residents value.

However, the last six months have seen global events outside our control unfold, with everyone in the country now dealing with increases in the cost-of-living. This was why we set out our ‘Cost of Living’ support in July. Our residents are struggling with rising bills and we, like every council in the country, are facing a similar picture.

"We will also be doing everything we can to offer support to our most vulnerable residents and offer much needed advice and guidance for everyone.”

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Cllr Roberts says he will be writing to the newly appointed Prime Minister, Liz Truss and also work with the Local Government Association (LGA) and County Councils Network (CCN) to make representations on behalf of the county about the financial pressures. 

He added: “At a time when our residents and businesses are facing unprecedented challenges I want our services to continue to be efficient, helpful and above all tied in closely with our partner district councils, voluntary and faith organisations. Only together can we get through this."

The council’s resources and performance cabinet panel will be asked to discuss at a meeting on September 14 a financial report, which notes options to make ‘in year’ efficiency savings and use some of the council’s contingency and reserves to bridge the budget gap this year.

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