Salford council's finances under 'significant pressure' as housing crisis bites

manchestereveningnews.co.uk:

Salford council's finances are under 'significant pressure', with a predicted £6.8m overspend by the end of the year. Children's services and temporary accommodation make up the bulk of the problem, with the council spending more to tackle a 'crisis' in housing and homelessness.

The overspend on temporary accommodation for adults is expected to hit the £1.9m mark, with a further £2.7m in housing benefit losses - money the council is unable to get back from the government from housing spending. READ MORE: "We are at the cliff edge": The '£50m' problem facing Manchester - and it's not the only one A report said the housing benefit overspend is 'a direct result of the increased pressures on the city to provide temporary accommodation'.

It added: "As a local authority we pay housing benefit directly to the housing providers, and ‘subsidy loss’ is the gap between how much rent a housing provider charges to a local authority, and how much of it the local authority can claim back from DWP under housing benefit rules. "In some cases, we cannot claim the full amount of rent back and must cover the remaining costs from our own budget." Other pressures include a £1m overspend on school transport for children with special educational needs and disabilities.

The council is planning to plug the total £6.8m black hole by using its reserves, and believes this will make sure it can set a balanced budget regardless of the pressures.