An "extra layer of bureaucracy" has been added for departments wanting to spend money as cash-strapped Stoke-on-Trent City Council battles to avoid bankruptcy.

Financial controls have been imposed including an application process to access funds from "discretionary budgets" and other pots below £10,000 – and a "spending panel" is due to be introduced to consider all spends over £500.

The authority is currently forecast to end the current financial year in March with an £8m overspend. Challenges include a rapidly rising number of children in care, the cost of living crisis and historically low levels of reserves.

If the council is unable to set a balanced budget – which is required by law – it will have to issue a section 114 notice, which is similar to a bankruptcy notice. This step would ban new spending on anything except services the authority is legally required to provide, safeguarding vulnerable people and pre-existing commitments.

While financial bosses look to balance the books, decisions made by the new administration to create a new £3.9m funding pot for projects in Hanley and hold a family hub launch event were questioned at a scrutiny meeting on Wednesday (November 22). Concerns were also raised about lights being left on in the Civic Centre late at night and lack of soap in the men's toilets.

Councillor Dave Evans, the former cabinet member for children and young people under the previous Conservative administration, said: "Family hubs were launched in July (following the change in administration) but we had already launched family hubs. When you are re-doing things that are already done to feel better, it's only a grand here and a grand there but it adds up.

"If you want to spend over £500 now you have to go to a panel. If people need to stick to strict limits they will if they see other people doing it.

"There seems to be a lack of consistencies across the council. Driving past the Civic Centre all the lights are on and they are always on late at night – we're saying we have a significant financial problem but we can't be bothered to turn the lights off."

Concerns were raised about lights being left on in the Civic Centre late at night and a lack of soap in the men's toilets (Nub News).

Councillor Dan Jellyman, another former cabinet member under the previous administration, called for further details of what the £3.9m budget announced at a cabinet meeting earlier this month was to be spent on. It has been earmarked for Hanley following a review of the capital programme and consists of mixture of unspent budgets and sums which have not been allocated to a specific project.

Director of strategy and resources Nick Edmonds responded: "Because of the circumstances and challenges we are currently aware of, we find it prudent to set the money aside."

Councillor Alistair Watson, cabinet member for financial sustainability and corporate resources, added: "I think prudence is key – we don't know how some schemes are going to go.

"It could be put into one of the projects that are underway, it could be anything currently on the table that's deemed critical or essential or very important to council or the city.

"In terms of new ideas I am happy to talk about this in scrutiny. But with the serious and sombre position the council is in everything has to be done with an eye to resilience and sustainability."

A report to Wednesday's scrutiny meeting said: "The council has imposed immediate additional financial controls, including centralisation of all discretionary budgets with application process to access funds, approved by the (Section 151/Deputy Section 151 officer); centralisation of all other budgets below £10k, with the same application process in place; recruitment freeze on all but critical posts, with City Director and (Section 151 officer) approval at Establishment Board required (and) removal of finance system privileges, now restricted to )Section 151/Deputy Section 151 officer) and Senior Finance Managers. (It is) soon to be implementing spending panel for all spend over £500.

"The council has engaged in ongoing dialogue with DLUHC (the Government's Department for Levelling Up, Housing and Communities) and shared its financial position. Dialogue remains open as to potential support over the medium term."

Councillor Jellyman, who raised the issue of soap provision in the men's toilets, asked: "Does the extra level of bureaucracy have a negative impact with certain things that are needed? Has the welfare of staff been impacted?"

Mr Edmonds replied: "If there is necessary spend we are not saying no. It is challenging from a capacity perspective.

"We are having to make difficult decisions we don't want to. But in the financial position we face, it is necessary."

READ MORE: What's on in Stoke this weekend - Christmas light switch on, markets and live music 

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